Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Jim McMannis who wrote (120614)	5/5/2008 8:35:06 AM
From: Pogeu Mahone	Respond to of 306849

Hovnanian Says Deteriorating Market to Hurt Results (Update2) By Andrew Blackman May 5 (Bloomberg) -- Hovnanian Enterprises Inc., New Jersey's biggest homebuilder, will report additional costs of as much as $275 million for the fiscal second quarter because of the worsening U.S. property market. The company, based in Red Bank, New Jersey, said home deliveries dropped 21 percent in the three months ended April 30. The extra expenses will amount to at least $225 million on a pretax basis, Hovnanian said today in a statement. Homebuilders are struggling through the slowest period of home sales in 25 years. The market's weakness forced Hovnanian to slash prices to generate revenue, causing the company to report a loss for the last six quarters. ``Continued deterioration in sales pace, pricing and gross margin'' contributed to the increase in costs, according to the statement. Hovnanian's market value has fallen by 52 percent in the past 12 months to $727 million. On May 2, the shares dropped 18 cents, or 1.5 percent, to $11.67 in New York Stock Exchange composite trading. Net contracts for the fiscal second quarter fell 29 percent from a year earlier to 2,226 homes, Hovnanian said. U.S. foreclosure filings more than doubled in the first three months of the year, RealtyTrac Inc. reported last week. Higher mortgage payments and falling home prices prevented some property owners from selling or refinancing without losing money. Hovnanian is projected to report a net loss of $1.56 a share for the second quarter, according to the average estimate of analysts in a Bloomberg survey. To contact the reporter on this story: Andrew Blackman in Berlin at ablackman@bloomberg.net. Last Updated: May 5, 2008 07:24 EDT Email this article Printer friendly format Advertisement: A surprising prediction by Forbes columnist Ken Fisher.