Builders Optimistic About Turnaround
Hovnanian, one of the nation’s largest home builders believes that the residential housing market will begin to turnaround in 2007. The CEO of Hovnanian, Ara Hovanian, expects cancellation rates by homebuyers backing out of sales contracts and forfeiting their down payments to remain high during the first quarter of 2007, but later improve.
Hovanian is quote in a recent MarketWatch articles as saying, “Cancellations are likely to stabilize and stay level this quarter, and then decrease.” He also added that cancellations were expected to return to “normalcy in a quarter or two.”