Ah, what a class act. Ara Hovnanian, CEO of one of the failing homebuilders, stood up in front of other homebuilders two months ago and illegally and blatantly encouraged price fixing and racketeering. Of course, since the US doesn't have a functioning Justice Department anymore, this illegal price fixing attempt won't even be investigated. You're on your own Americans.
But since homebuilder CEOs are generally lying deceptive snakes, instead of raising prices like he told his peers they should do, well, get this HP'ers, in a desperate attempt to avoid bankruptcy, Hovnanian is now gonna SLASH PRICES.
Here's what Hovnanian said two months ago, to his fellow builders:
"Raise prices," he said. "Buyers aren't buying because they think you're going to lower prices again. There's interest but there's fear. Raise prices 3-4 percent. And quit giving discounts.''
And here's what's Hovnanian is planning now:
The company also said it would slash prices on homes across the country beginning late next week to try to sell off excess inventory.
So, HP renews its call for an Justice Department investigation of Ara Hovnanian for attempted price fixing. And I hope Hovnanian's fellow desperate homebuilders learn from this, and start slashing their prices too, versus trying to move dead inventory (while distorting the median price data) with free TVs, Hawaiian vacations and pools.
It's the price stupid. It will always be the price stupid.
20 comments:
It's the price of the land silly. You know they are not making any more of it.
There are two subdivisions near me that have a big tag on their signs "Rock Bottom Prices." I checked out their models and traffic was dead. Last year these same subdivisions had tons of traffic and ample staff.
Look at the Fannie REO's. They are leading the way down. The other lenders are still pricing their REO's at 2005 wishing prices.
I see a pattern here Keith. Blame the immigrant no matter what. I thought it was only Mexicans. I see now it is also E. Europeans.
So anyone who isn't named Smith or Jones is evil in your book.
Got it.
But, but, but... Dopes said that home prices would keep going up 20% a year!
The builder incentives no longer work as the few buyers it attracted bought and with the new lending restrictions (no liar loans, no 100%, bad credit loans) no buyers left.
A.nother
R.idiculous
A.$$hole
You've gotta be kidding me
People two years ago were lining up and winning "lotteries" to pay prices that would be 30% higher than what people would pay today, yet there are no buyers
Interesting....
I miss DOPES! I hope she didn't hurt herself
It's nice to see everything playing out as indicated. But, the big question is, what will the Fed do?
What a contrast to how their image is portrayed on their web page khov.com. I love to notice the inconsistency of things like this.
For fun I am going to start shopping for a house, act real interested, then at the last second offer less that half of the asking price. If they reject my offer, man will I get offended.
Anonymous said...
But, but, but... Dopes said that home prices would keep going up 20% a year!
September 07, 2007 12:06 PM
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Yeah, also the DOW is down. I am wondering why it took me to tell everyone and not DOPES! I guess she will be back when the DOW ticks up a bit.
I wonder what color DOPES' pom poms are?
REL: Ara Hovnanian, CEO of one of the failing homebuilders, stood up in front of other homebuilders two months ago and illegally and blatantly encouraged price fixing and racketeering.
It sounds like Hovanian's plan was to get his competitors to raise their prices so that he could undercut them.
Oh well. The scheme obviously didn't work.
V.L.
I see a pattern here Keith. Blame the immigrant no matter what. I thought it was only Mexicans. I see now it is also E. Europeans.
So anyone who isn't named Smith or Jones is evil in your book.
I can tell you this, if home prices and traffic don't get better, I would favor never letting another soul into the USA. Suck it up.
There is nothing wrong with "price fixing". If you have competition, then you don't need any regulation to prevent any company from artificialy raising their prices. As you can see, it took only two months until the market forced them to face the reality again and start slashing the prices.
Pump.......
and Dump.........
Classic!
Hovnanian will try to deal with its circumstances by slashing prices on its homes across the country beginning late next week. It's a novel idea -- one that other builders are also adopting, and one that just might find its way into the ranks of those attempting to unload pre-owned homes. It's also an approach that works: My wife and I recently placed a "buyer's price" on our home amid Florida's disastrous market. It sold the day it was listed, but the accompanying equity hit can be a tough pill for some sellers to swallow.
Too bad the media doesn't report stuff like this I think even Sheeple would be interested
Fannie Mae has some good deals on REO's. They're really using the slash and burn technique to clear their books. If anyone is interested in buying a REO in the next few years, I suggest you look at the Fannie website first.
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