Hovnanian Enterprises is reporting 40% cancellation. Hovnanian said sales "seriously deteriorated" in October. Compared to other like Beazer, 40% cancellation is a good rate.
"Deal of the Century" will also lead to more cancellations and once you sell a house you are setting a market price. If you signed a contract a week or a month before, you are likely going to cancel to get the new price. You are also not going to see more buyers unless you offer the same price to them.
Lennar it would be a good time to rethink mothballing. 2008 is going to be worse than 2007. It's going to be a while before we see real estate prices going up.
http://www.northjersey.com/page.php?qstr=eXJpcnk3ZjczN2Y3dnFlZUVFeXk3NDImZmdiZWw3Zjd2cWVlRUV5eTcyMTgxOTUmeXJpcnk3ZjcxN2Y3dnFlZUVFeXkyMg==Home builders are struggling through "the most serious housing correction in modern times," Centex Corp. Chief Executive Officer Timothy Eller said Monday at a UBS conference in New York.
The cancellation rates of homes sold during the three-day sale were below normal, Ara Hovnanian said. That rate is expected to grow, he said.
"We had a concern that the Deal of the Century may lead to greater cancellations, because if you buy on a whim you may be more likely to walk away," said Nishu Sood, an analyst in New York with Deutsche Bank Securities Inc., which owns Hovnanian shares. "It still could come and we remain concerned that cancellations could go up next quarter."
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