I have to say that given the earnings of the major public homebuilders that I’ve been reporting all week, Hovnanian CEO Ara Hovnanian’s comments on CNBC this morning made me wonder if his rose-colored glasses weren’t perhaps impairing his vision entirely. No offense at all to the CEO, who, I’m happy to say, is one of very few of his ilk right now that will actually agree to go on TV and speak his mind. The rest have been turning down our requests, several even telling me that I personally make them look foolish.
Mr. Hovnanian took the chair at a difficult time to be sure, and I don’t blame him for trying to reign in a little bit of the melodrama in housing right now. “We've been through these cycles many many times before,” consoled Hovnanian. “When it's bad, everybody thinks it's going to be bad forever, and that's not the case. It is going to come around.”
Of course the market is going to come around, but I have to disagree with his follow-up: “It's a psychological problem right now more than anything; job growth is good, interest rates are still really very very good, demographics are good, so it will come around.”