NEW YORK (Reuters) - Shares of home builder Hovnanian Enterprises Inc (HOV.N) tumbled on Wednesday after the company posted a wider-than-expected loss as the value of its land and inventory continued to deteriorate.

In premarket activity Hovnanian shares traded at $7.51, down 10.6 percent from their Tuesday closing price of $8.40.

After the close of the market on Tuesday, Hovanian reported a net loss of $469 million, or $7.42 per share, for its fiscal fourth quarter, ended October 31. Analysts on average had forecast a loss of $1.63 per share, according to Reuters Estimates.

A year earlier, Hovnanian reported a net loss of $118 million, or $1.88 per share.

The fourth-quarter results included pretax charges of $383 million for the declining values, compared with charges of $322 million in the fourth quarter 2006.

"Unfortunately, we expect another grim spring season as high and rising inventories continue to push home prices lower, further eroding buyers' confidence," Bank of America analyst Daniel Oppenheim said in a research note.

The spring selling season is to home builders what Christmas season is to retailers, the months that generate a bulk of the companies' sales.

As demand for new houses has dried up, the value of the land and other inventory home builders already have on their books declines. As the U.S. housing market deteriorates, home builders continue to write down the value of these assets and incur charges.

The U.S. housing market has been declining for two years, initially sparked by soaring prices that forced buyers out of the market. The unexpectedly steep decline has left a glut of homes on the market, pushed values down, and led to tighter credit and concerns about a wider U.S. economic slowdown.

(Reporting by Ilaina Jonas; Editing by Steve Orlofsky)