The chief executive of homebuilder Hovnanian Enterprises Inc. says that even if efforts to modify at-risk mortgages fail to stem foreclosures, that won't completely devastate the housing market.
Ara Hovnanian made the remarks Wednesday during a conference call with analysts.
The executive argues new construction and the supply of unsold homes have fallen well below normal levels in many metropolitian areas.
That means homebuilders are in a better position to compete than years ago when markets were flooded with unsold homes.
The Red Bank, N.J., company reported Tuesday its first quarterly profit since 2006, thanks to a hefty tax gain.
Excluding the $291.3 million tax gain, Hovnanian lost about $55.1 million, or 69 cents a share.
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