Hovnanian Enterprises Inc.’s contracts during the first quarter increased 27 percent from the same time a year ago, the Red Bank–based home builder reported Tuesday.
“I think new home construction is still in the basement, but it might just be starting to inch out,” Rutgers University economist James W. Hughes said.
Hovnanian is New Jersey’s biggest home builder. And it has been battered both during the recession and its aftermath; even in 2011, nearly five years after the housing downturn began, Hovnanian reported a net loss of $286 million.
The slow recovery of both Hovnanian and its competitors has deprived New Jersey and the nation of an industry that historically has been counted on to propel the economy out of recessions, economists have said.
Hovnanian on Tuesday, however, said its net contracts for the quarter that ended Jan. 31 increased to 1,079 homes from 850 homes the same quarter a year ago. It added that the improvement continued into February.
Other home builders have reported gains, too. Horsham, Pa.–based Toll Bros. recently said it signed 19 percent more contracts during the quarter that ended Jan. 31.
Jeffrey Otteau, the president of the Otteau Valuation Group in East Brunswick, a real estate appraisal and consulting firm, said earlier this week that home sales in New Jersey spiked in January — a sign that the economic recovery is in full swing.
As Seen in the Asbury Park Press Sunday February 26th, 2012
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