Homebuilder Hovnanian to SLASH prices next week - even though their CEO illegally pleaded for other homebuilders to RAISE prices just two months ago

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.

Jim Cramer from November 2006 on how homebuilders and mortgage lenders would be fine (oops!)

Man, it's one thing to be wrong. It's another thing to be THIS wrong.

Jim - nice to see you (finally) come around. You lost people some crazy money with this terrible call from last year. I faintly remember him having the Orange Man on once too and glowing all over him (no pun intended). I guess they had a falling out...

So Jim, when did you finally figure it out? Right after you sold your beach house (for a big loss)?

FLASH: US homebuilder sentiment falls to "suicidal"

Come down from the ledge, Bob Toll

Come down from the ledge, Ara Hovnanian

Come down from the ledge, Richard Dugas

NEW YORK (Reuters) - Homebuilder sentiment slid in July to its lowest since January 1991 as fallout from the housing slump and subprime mortgage crisis caused a glut of new homes, the National Association of Home Builders said on Tuesday.

Homebuilders are struggling to unload excess inventories left to them as speculators abandon contracts and buyers find it harder to obtain mortgages. Soaring delinquencies on the riskiest loans have forced lenders to boost requirements for many borrowers, locking out customers who might previously have qualified, analysts said.

A message from HousingPANIC to out of control homebuilders and Desperate Homedebtors

Homebuilders: Keep building. Keep adding inventory to the fire. Keep pumping out houses nobody wants, nobody can afford and nobody can get financing for anymore.

Desperate Homedebtors: Keep asking for prices that no sane person would pay. Keep holding out for that price you "deserve". Keep hoping against hope. Keep reading realtor blogs.

Why, you ask, would HP ask such a thing?

Because unsold and unwanted housing inventory will continue to build and build and build and build and build and build and build and build and build and build some more...

And then home prices will crash back to the level where the fundamentals will make sense again.

Toxic buildup in slumping housing market - Home builders are fighting the shrinking demand ... by adding more supply

CENTRAL VALLEY, Calif. - How do you deal with excessive supply? Add more supply!

Sounds like a head scratcher, but that’s exactly what home builders are doing.

The housing market hasn’t seen any light at the end of the tunnel: Home builders have built too many homes and they've had too many cancellations. There are too many existing homes on the market competing with them, and now here come the foreclosures adding to supply.

Though homes don’t sell, home builders are building fast in some places.

You might wonder why home builders would dig larger holes for themselves.

Standard Pacific won't comment for the story, saying the company is in the quiet period before posting earnings. But Ara Hovnanian, CEO of home builder Hovnanian Enterprise said recently that building Spec homes is about the only way to liquidate land these days.

"It's easier to sell land by popping a house on it than it is to just sell land because there are just not many buyers out there," he said.