Real Estate Update

The construction industry in Las Vegas has slowed down considerably compared to prior years. For a while, it seemed that a new project was opening every other month. With the national economy in a slump, tourism has fallen and massive foreclosures, builders weren't eager to put new communities on the market.

Despite the odds, last month saw the grand opening of the largest green project in the state, CityCenter. CityCenter obtained gold LEED ratings, making it one of the greenest projects in the US. Overall, new construction is down but not as much as one would think according to a recent article in the Las Vegas Review Journal. Heavy construction has resumed at Tivoli Village at Queensridge with the first phase scheduled to open in December of this year. Unfortunately the project was not immune to the market. The planned  Queensridge condominiums units have been put on permanent hold. Tivoli Village isn't the only project to be scaled back. Condos at the Harmon at CityCenter were also scrapped, although the official reason given was that it was due to a construction defect in the original plan, not because of the market. Some builders have stopped construction completely while others are going ahead with their plans.

Lennar, Richmond American, Pulte and other large builders are still rolling out new homes but have scaled back construction. A good example of would be Canyon Springs. Lennar Homes is holding the grand opening of the community tomorrow. There are seven immediate move-in homes available and another 12 homes will be complete by March 31. Lennar isn't the only builder to downsize communities either. Some builders have gone so far as to suspend all new community construction and even halt building on partially finished communities. Overall construction in the valley is down just over six percent, so there are plenty of new homes to choose from. New home builders are still feeling the pinch of so many foreclosed properties available on the Las Vegas real estate market. To lure in homebuyers, builders are offering some great deals to entice homebuyers to buy 'new'.

If you are thinking about buying a new home and would like a list of brand new properties on the market, feel free to contact me. Thanks for stopping by our Las Vegas real estate blog.

Comments

New Constuction

New construction has slowed down in Austin, TX as well. I think this is overall a good thing. Real estate is like any other product needing inventory management. If builders don't over speculate, we won't have excess inventory. We need to remember the laws of suppy and demand.

I am also mindful of new buyers purchasing a home in a community that is still under development. How long they plan to own the house will determine whether the community is going to be a good choice. It is very hard for sellers of re-sale homes to sell their house, when they are competing against new construction.

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