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

EDEN PRARIE, Minn. -- Minnesota residents were about 460 people who made deals this past weekend at new-home communities offered by K. Hovnanian Homes in Minnesota and other Midwestern states.

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

"The preliminary results exceeded our expectations," said Ara K. Hovnanian, president and chief executive officer of Hovnanian Enterprises, parent company to K. Hovnanian Homes. "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."

The company reports its financial matters in geographic segments. Minnesota is in the Midwestern segment, which includes Illinois, Kentucky, Michigan, Minnesota and Ohio. In those states, the company is reporting about 460 gross sales. Gross sales include contracts and deposits. For its fiscal quarter ending July 31, the company had 268 contracts for Illinois, Kentucky, Michigan, Minnesota and Ohio.

"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 Art Plante, division president of K. Hovnanian Homes in Minnesota. "We believe people are getting more realistic about the price of homes, and that's resulting in increasing sales. That's increasing interest in our inventory homes and homes already under construction that people can move into more quickly than usual. 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 Minnesota over the weekend. Incentives varied in each community, but included combinations of free options, no closing costs, reduced loan origination fees. Some condominium buyers also received a year of free dues to the homeowners' association. Although those wishing to buy homes have been reluctant to enter the market, the Deal of the Century brought them out in droves.

"Confidence is returning," said Plante. "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 pretty much 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 levels in K. Hovnanian communities around the state, although buyers can still find value, said Plante.

"Homebuyers want beautiful, practical floor plans, but they also want a quality home," he said. "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 sixth largest homebuilder in the nation. The company delivered 1,984 homes in Illinois, Kentucky, Michigan, Minnesota and Ohio 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.