Friday, September 14, 2007

Hair Cuts Are Scary






Fire Sale: Hovnanian Slices Luxury Home Prices



By AP 14 Sep 2007 10:29 AM ET Font size:

Hovnanian Enterprises, struggling like other home builders, is offering six-figure discounts on some of its properties this weekend as it attempts to draw interest in a slumping market.

Ross D. Franklin / AP

The sales blitz involves dropping prices by more 20 percent on some of its prime real estate.

The largest discounts are on the most expensive homes, including a 3-bedroom condominium by the Hudson River in West New York, which has been reduced $240,000, or 22 percent, to $862,000 this weekend. A 25-percent discount is
being offered on a 2-bedroom home in Jackson Township, N.J., which lowers its price tag to $300,501.

...

"We've certainly seen conditions in the housing market continue to deteriorate in the last several months," Chandan said. "The downward adjustment in prices, whether for new homes or existing homes, is going to be far more severe than what many people thought earlier this year."

...

"Depending on how successful it is, it might not be a one-time event," said Keith Gumbinger, vice president of HSH Associates, a consumer loan research firm in Pompton Plains, N.J., suggesting that buyers might wait if they thought a better discount was imminent.

Gumbinger found the sale remarkable, given low mortgage rates.

"You wouldn't think there is a need to go to the marketplace with such discounts," he said. "This is a pretty good indication from a prominent homebuilder that the market is troubled."



That Gumbinger guy is a blind fool.

I love the scare tactic with HOV. One time deal my ass. If a guy bought that condo for only $800k, would YOU buy a similar one for 20% more NEXT MONTH?? I think not.

3 comments:

Anonymous said...

"Depending on how successful it is, it might not be a one-time event," said Keith Gumbinger, vice president of HSH Associates, a consumer loan research firm in Pompton Plains, N.J., suggesting that buyers might wait if they thought a better discount was imminent.
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Hmmmm....why don't you just lower the prices to what they should be. That way, the "wait" will be taken out of the equation and buyers would not be so hestitant.

stuckinthecity said...

I was listening to "Making Money in Real Estate" with Joe Aldigger (sp?) this morning. He actually advised someone to pay his parents $600k versus $450k for their home to keep the comps up and the neighbors happy!

Unbelievable! Does Joe think the neighbors will come out and help you when you start missing payments? What a jerk!

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