New Home Construction Picks Up in Southern Nevada - 8 News NOW

New Home Construction Picks Up in Southern Nevada

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LAS VEGAS -- The housing crisis will have an impact on southern Nevada for years to come, and homebuyers hoping for a quick and easy foreclosure steal aren't having any luck.

While new home construction is finally happening again, our market still has a long way to go before it's fully recovered.

Home Builders Research shows 146 subdivisions are actively building across the valley. As of the beginning of August, 4,264 new home sales have been recorded for 2013. That's an increase of 69 percent year over year -- a nice comeback, but now, one expert says sales are slowing.

"It's still a good market, but they have softened from what they were during the second quarter," said Dennis Smith, president of Home Builders Research.

His new "Las Vegas Housing Market Letter" tracks all the ups and downs of subdivision sales.

"The last two months or so, we've seen prices level off. We pretty much have reached this plateau right now," Smith said.

Smith said when new home prices increase by 20 or 30 percent in six or seven months, there will be a point when consumers say, 'Hey, wait a minute, let me think about this,' and they believe that point in time has arrived.

"We may see prices start to go up again," Smith said. "We may start to see them go down a little bit if we see an increase in the inventory of distressed sales being released by the banks."

"Patience is key," said Nick Nolf, broker/salesman with The Nolf Group.

Nolf says homebuyers looking for an existing home will have to shop around.

"There are so few properties still on the market that it takes five, 10, 15 offers to still get an acceptance for any buyer trying to purchase," Nolf said.

One issue home builders have right now is with land. Las Vegas has a limited supply of lots, and the cost is rising. The median cost of a new home in July was just more than $266,000 -- a year-to-year increase of 37 percent.

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