Thursday, September 13, 2007

Will Sales Gimmicks Help Home Sales?

The answer is?

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clipped from blogs.wsj.com

Amid a shaky housing market and a credit crunch, will deep price cuts make a difference on moving homes?

In one test, Hovnanian Enterprises is running this weekend a “Deal of the Century” 72-hour sale, promising “unprecedented savings” nationwide. This weekend’s sales involve thousands of homes in 19 states and starts at 9 a.m. Friday and ends at 9 p.m. Sunday, according Michael Skea, a marketing and sales executive, who adds that the company has never had such a sale in its half-century of homebuilding.

The largest discounts are on the most expensive homes, including a 3-bedroom condominium by the Hudson River in West New York, N.J., which has been reduced $240,000, or 22%, to $862,000 this weekend. A 25% discount is being offered on a 2-bedroom home in Jackson Township, N.J., which lowers its price tag to $300,501.

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