U.S. Home Builder Confidence Reaches 7-Year High

It has been almost eight years since homebuilders could be described as "optimistic" about the future of new home sales. But, in the builder sentiment index released by The National Association of Home Builders and Wells Fargo from May of this year...they were. The survey measures customer traffic at new home sites, sales conditions, and projections for the future. For the first time since before the market collapsed, more builders rated these conditions as good rather than poor. With interest rates remaining reasonably low, to spite recent advances, and current inventory continuing to be light, builders are beginning to feel good about the future of new home sales.

Just another domino it seams in the housing market's break neck race towards new highs...especially in Las Vegas. Nat Hodgson, executive director of the Southern Nevada Home Builders Association, recognizes that the current boom in new housing in Sin City traces back to the passage of AB-284. Recognizing that this bill would slow foreclosures, and with buyers struggling to find any available inventory, builders rushed to apply for permits. "We're very encouraged by the local economy," Hodgson said, "We're no longer looking down at the bottom. We're looking up to get out of the hole we dug ourselves into."

Yeah. Maybe.

Or maybe we are setting ourselves up for another hole. Many economists have noted that the rapid rise in Las Vegas home prices seems to have very little to do with an improving economy. They have wondered aloud at the feasibility of these gains continuing.

The bottom line is that real estate continues to be very volatile in Las Vegas.  I'd love to tell you that you can come to our town, purchase any piece of real estate, put a renter in it, sit back and make money.  And three years ago you could do pretty much just that. But times have changed.  There are still deals to be had in Las Vegas real estate.  But you have to know where to look, and you have to be careful. I understand this market because I have invested in it, and sold profitable properties to my investor clients, through all the ups as well as the downs. If you are interested in investing in Las Vegas real estate, call me.  We should talk.