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Homebuilders Anticipate Economic Recovery In Las Vegas
By Stephen Roberts | April 2, 2010
The Las Vegas homebuilding Industry has high hopes that 2009 was the bottom year and 2010 will be the beginning of recovery. Despite the $8,000 federal tax credit incentive to first-time homebuyers, the sales of new homes here in the Las Vegas and Henderson Valley fell an astounding 48 percent according the SalesTraq. The number of new home sales dropped from 9,965 in 2008 to 5,184 in 2009. That’s a long way away from the 38,705 homes that builders in Las Vegas sold in 2005 during the housing boom at the peak of the market.
It is hard to imagine a recovery of the economy without the recovery of the housing market leading the way. If you are building homes you are going to build schools, roads, retail centers, etc. Many homebuilders are expecting 2010 to be a rebuilding year, where they can focus on building different types of homes that better meet the demand of the time.
The large problem in a state such as Nevada is that many prior homeowners are underwater. Many homeowners owe more on the mortgages than the homes are worth. These people will not be in position to buy a new home for quite a while. There is also a concern that recovery may still be stifled because a lot of subcontractors have gone out of business due to the recession. Once there is high demand, it may be difficult for homebuilders to keep up. There also may be a shortage of materials such as lumber.
As we approach summer in 2010 we hope to see not only the housing market recover, but the economy as a whole.
For all your Real Estate needs contact Steve Roberts at 702-739-4392.
Topics: First time homebuyer tax credit, Henderson Nevada Homes, Homebuyer tax credit, Las Vegas Nevada Real Estate, Southern Nevada Monthly Economic Update, foreclosures | No Comments »