These are desperate times for desperate people. Real estate shops are opening in Wal-Marts. Realtors are on roadsides with signs. And homebuilder CEOs can’t face reality.
According to CEO Ara Hovnanian, “While the housing market is definitely in a slump, we are still selling homes.”
And he actually believes that. No, really.
The company, whose stock is 40% off 2007 highs, recorded an $81 million Q3 loss, and announced it won’t pay dividends on Series A preferred stock, is being lead by a guy who believes, “People want to buy homes, but the media has made them nervous. They just need to realize that there’s no better time to buy a home.”
Sadly, there’s plenty to be nervous about. And no, now is not the time to buy a home.
Still, Hovnanian remains optimistic. “While October and November were slow, the company saw a faster pace of home sales in the first three weeks of December.”
Poor guy, maybe he forgot his medication?
