New Home Sales Set to Rebound in ‘07
John Burns, a Southern California-based real estate consultant, recently told an In Business Las Vegas reporter that he believes the new home market in the Las Vegas Valley could recover by the end of 2007. Furthermore, he predicts existing home prices will drop approximately 5% in 2007 and remain soft until 2009.
He credits the swift turn around in the new home market to builders who moved quickly to correct an oversupply in 2006 by scaling back housing starts, which were down a reported 30% in 2006. Some reports show Las Vegas now having a one-month to two-month supply of new homes.
Burns cautions that builders must remain diligent in trimming costs and keeping their prices down to maintain affordability. Competition from the large inventory of resale homes will keep builder prices down for some time.
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