Gee, imagine that. You slash prices, and you move dead inventory.
Retail 101 folks. This ain't brain surgery.
Meanwhile, Hovnanian just reset the comps for years to come... And they'll never sell another house at the inflated price - can you imagine the Hovnanian sales rep trying to explain to a buyer that the $150,000 off deal was only last weekend, and that they'd have to pay the higher price? Not a chance.
And the funniest thing about this story is that Hovnanian was (illegally) calling on his other builder buddies to RAISE prices just a few weeks ago. Suckers!
Hovnanian Spurs Home Sales With Price Cuts of Up to 30%
72-hour promotion by Hovnanian Enterprises Inc. designed to jump-start sagging home sales exceeded the company's expectations, resulting in more than 2,100 gross sales, the homebuilder said.
The figure included more than 1,700 contracts and more than 400 sales deposits. In its fiscal third quarter ended July 31, Hovnanian recorded 2,539 signed contracts, excluding unconsolidated joint ventures.