Homebuilder Hovnanian Enterprises
announced a new marketing campaign that uses recent signs the economy may be recovering to encourage consumers to act on the notion that now’s the time to buy before prices return to normal.
Hovnanian’s “Pounce Before the Bounce” campaign was announced Thursday during a conference call detailing the builder’s fiscal third quarter results. (The company said it lost $168.9m, an improvement over the $202.5m loss one-year prior.)
The campaign is an interesting strategy on Hovnanian’s part, especially given that many industry observers believe this summer’s price increases are only a blip on the radar, and prices could go down when more REO properties — those stalled by the myriad foreclosure moratoria that are now winding down across the country — hit the market later this year.
Then again, your average K. Hovnanian Homes customer isn’t necessarily going to be the same type of do-it-yourselfer interested in rehabbing a distressed property to live in.
In October’s edition of HousingWire,
we explore consumer psychology and its impact on the economy and how it may be the light out of the tunnel. This campaign, and other similar marketing strategies no doubt waiting in the wings, are probably going to be around for a while, regardless of what the actual economic data shows.
Write to Austin Kilgore