Red Bank, NJ, April 5—-Homebuilder Hovnanian Enterprises said the value of its contracts rose sharply last month as activity swelled in the southeast and southwest portions of the country.
Net contracts in March increased 11.2 percent to a total of 1,910, with a dollar value of $650.4 million, up 22 percent from the year before.
Before accounting for contracts from unconsolidated joint ventures -- including its March acquisition of Town & Country Homes -- monthly net contracts showed a decline of 2.9 percent to 1,559, but the overall value grew 3 percent to $520.8 million.
In the Southeast region, contract value climbed 40 percent to $174.2 million as net contracts rose 7.3 percent to reach 485. Meanwhile, business in the Southwest increased 12.9 percent to 428 net contracts, with the dollar value surging 28 percent to $86.1 million.
The value of contracts in California sank 11 percent to $171.3 million, while the Northeast region saw contract value plunge 27 percent to $89.2 million on a steep drop in building activity.
Overall, the number of active selling communities grew to 310 from 287 in March 2004, Hovnanian said.
The company is expecting an increase in the number of communities and stronger year-over-year growth during the second half of 2005, it added.
