The Real Deal New York

Hovnanian struggles in down market

September 04, 2008 02:40PM
By Adam Pincus

  • Print

Losses continued for New Jersey-based home builder Hovnanian Enterprises, as revenues fell by 34 percent for the quarter ending July 31, the company said yesterday.

Hovnanian reported losses for the eighth straight quarter, reaching $202 million on revenues of $716 million. In the same period a year ago, the company lost $80 million on revenues of $1.1 billion.

The company’s average home price in New York, New Jersey and Pennsylvania dropped 23 percent to $388,689, and 12 percent nationwide to $284,427.

In a healthier market two years ago, during the same period, the company reported profits of $74 million on revenue of $1.5 billion.

President and CEO Ara Hovnanian said in a statement that the company’s positive cash flow could be used to buy low-priced properties.

“As we continue to compete against record foreclosures,” he said, “higher than normal levels of resale listings and poor consumer confidence, the housing market remains challenging.”

Comments are closed.

MENU