New Jersey Homebuyers Respond Enthusiastically to K. Hovnanian's Deal of the Century.

EDISON, N.J. -- About 450 people made deals on new homes this past weekend at new-home communities in New Jersey, New York and Pennsylvania offered by K. Hovnanian Homes and Matzel & Mumford.

The three-day sale was part of the company's first national sales event. Called the

"The preliminary results exceeded our expectations," said Ara K. Hovnanian, president and chief executive officer of Hovnanian Enterprises, parent company to K. Hovnanian Homes and Matzel & Mumford. "The high level of traffic we saw in our sales offices and models over the weekend and over the past several weeks convinces us that there are interested buyers in the market today."

In New Jersey, New York and Pennsylvania, K. Hovnanian and Matzel & Mumford recorded about 450 gross sales. Gross sales includes contracts and deposits. For its fiscal quarter ending July 31, the company recorded 408 contracts for New Jersey, New York and Pennsylvania.

"We have been seeing traffic and sales increasing in many of our communities over the past few weeks, telling us that people are ready to buy homes again," said Jim Driscoll, division president of K. Hovnanian Homes. Driscoll oversees operations in North Jersey and New York. "We believe people are getting more realistic about the price of homes, and that's resulting in increasing sales.

Barry McCarron, division president overseeing operations in Central and Southern New Jersey, agreed, saying that people are selling their homes and then looking for a new home they can move into quickly.

"This phenomenon is increasing interest in our inventory homes and homes already under construction that people can move into more quickly than usual," he said. "When we build a Quick-Delivery Home, we include the most popular options and upgrades. That excites customers, who quickly see the value in these homes."

Customers packed K. Hovnanian's sales centers across New Jersey and New York over the weekend. Incentives varied in each community, but included combinations of price reductions, premium waivers and free upgrades. Those wishing to buy homes have been reluctant to enter the market, but the Deal of the Century brought them out droves.

"Confidence is returning," said John Moorzitz, president of Matzel & Mumford. "People have stayed out of the market for almost two years, and that has built up demand. They see that the economy continues to be good, interest rates are staying low, there are many homes to choose from and the deals have never been better. Savvy homebuyers also understand that prices have stabilized and that there are still good, conventional mortgages available. During our Deal of the Century event, we gave home buyers the best reason to purchase a new home - unbeatable quality at a once-in-a-lifetime price."

Home prices have returned to pre-sale prices in K. Hovnanian and Matzel and Mumford communities around the state, although buyers can still find value, said Barry Edelman, division president overseeing the Metropolitan Philadelphia area, including four New Jersey counties.

"Homebuyers want beautiful, practical floor plans, but they also want a quality home," said Edelman. "We're able to show them that we've been in business since 1959 and that nine out of 10 of our customers would recommend us to their friends and families. Coupled with the features and choices we're including and the good deals we're offering, we expect people to continue to buy homes."

K. Hovnanian Homes is the largest homebuilder in New Jersey and sixth largest homebuilder in the nation. The two divisions delivered 1,823 homes in New Jersey, New York and Pennsylvania during its 2006 fiscal year.

The parent company, Hovnanian Enterprises, Inc., was founded by Kevork Hovnanian in 1959 and is headquartered in Red Bank, N.J. It sold 20,201 homes nationally during Fiscal 2006, generating $6.1 billion in total revenues. The company builds planned communities that include single-family, townhomes, garden homes as well as mid-rise, high-rise and mixed-use buildings. The company also is known for its active-adult homes and its expertise in community redevelopment and environment rehabilitation. More information is available at www.khov.com or at 888-KHOV-HOME.