Boston, MA 06/05/2014 (wallstreetpr) – Hovnanian Enterprises, Inc. (NYSE:HOV) reported that it will bear a wider loss for its fiscal first-quarter due to a decrease in the demand of homes. HOV is involved in designing, constructing, and marketing and selling of homes, attached townhomes, condos, unban infill’s and planned residential developments. The company has two very distinct operations – first, home constructing and second, its financial services. Over all HOV covers a significant amount of areas in the country which includes New Jersey, Virginia, West Virginia, Florida, North Caroline, Georgia, California, Arizona, Texas and the list is endless. If we talk of its financial services, Hovnanian Enterprises, Inc. (NYSE:HOV) offers title services and mortgage loans to its customers of its home constructing business.
Worst-Performing Homebuilding Company Of The Year
The overall loss suffered by the company due to less demand of homes was nearly 4 percent share. Also, the net contracts collapsed to 1,202 homes from 1,344. In this enterprise, such a drop is just lethal to the profits and the credibility. Hovnanian Enterprises, Inc. (NYSE:HOV) stated that it had good hopes on the sales during the spring season which is also known as “Big Deal Days.” The work and planning to recover such loss is on full swing, and enough care is taken the situation does not worsen any further. To ease the stress and its dicey reputation in the market the company stated that this is just a temporary pause in the industry and certainly the homebuilding business is still in its initial stages only. Quite comforting!
Reason For The Decline In The Demand Of Homes
Hovnanian Enterprises, Inc. (NYSE:HOV) firmly believes that harsh and tough weather was the main reason that affected the net contracts and the demand. Such weather extended the construction time and eventually led to decrease in the demands of homes. Due to such extreme weather conditions, the U.S housing starts dropped 16 percent which can be considered the highest in almost three years.
