Housing downturn has silver lining for builders

Guest perspective: New trading tools enable hedging of inventory price risk

Hovnanian Enterprises last week ran a three-day “Deal of the Century” sale at its communities nationwide offering discounts of up to 30 percent on certain homes. The big New Jersey-based home builder said it generated sales of 2,100 homes — 10 times greater than its weekly sales average over the past three months.

Ara K. Hovnanian, president and CEO of the company, said, “The high level of traffic we saw … convinces us that there are interested buyers in the market today.