Getting Better wrote on October 08, 2007 08:04 AM: I've worked as a subcontractor for MANY builders in town for lot of years. Almost all of them care genuinely about their communities and home buyers.....not just making a quick buck. Caring about a quick buck is not sustainable business. Don't get me wrong, there are a few greedy builders, but in general, almost all of them were supplying the affordable homes that were in demand and helped Las Vegas grow.....hence the smaller lot sizes. 6 months ago I would have said overproduction was the problem....it takes time for large companies to "slow down the production line train." Now it is far and away foreclosures as the primary issue. They drive down home values, and inject excess supply at a discount to the home buying market. What led to the foreclosures? Free money, and investor home buyers. A few years ago, you had to win a lottery to even get a lot....and most builders picked the cream of the crop in terms of financial stability on who could go into that lottery. They wanted to ensure the homes closed...in an environment where supply could not meet demand. Many investors / flippers lied to get in...and at the first sign of depreciating home values....want to get out, or get foreclosed on.

In short, I don't blame builder greed for this....I blame personal greed, a Fed policy of nearly free money, and some bad lending practices.

I'm optimistic. We do still have 5,000 people moving here a month....pent up demand is building....and buyer fears will wane soon as these negative articles about the Vegas builder market becomes old news. I think it already is old news....same crap reported day after day (sorry Hubble).

;) wrote on October 07, 2007 03:43 AM: Normally I read these blogs soley for entertainment purposes however the comment regarding the builder should go belly up???? Come on Citizen LV. Sure their has been a lot of irresponsible lending as well as irresponsible borrowing but look at what these builders (your neighbors) were paying at auction for land to keep up with demand? And to who, your local Federal BLM office. The story is where are the billions that was raised at auction. I thought that money stayed in Nevada??? These builders want to keep working and working means building. You are obviously smart so maybe instead of posting a blog, help your neighbor or a friend! :)

Citizen LV wrote on October 06, 2007 08:53 PM: Your are all wrong. What drove growth in LV Real Estate is the same as the rest of the country. 13 Fed Interest rate cuts after 911. Free money, lead to poor standards in lending, thus everyone ran for the exit to buy a house. A big pile on. Now it;s over and the correction has begun. If local politicians and city, county officials failed us. Flippers lied about why they where purchasing the home and finance as a second home. This was a business venture ONLY, and they lied to get a home loan, They should have applied and been forced to apply for a commercial loan, like all business. The standards are higher and would have surpressed what happened. The market will crash and everyone should get burned. Real local people where frozen out. The local person would have protected the standard of living.

The builders deserve to Belly UP!! and go Chapter 13..

cc wrote on October 06, 2007 03:15 PM: If mortgage lenders didnt give away free money to people who hardly had any credit, there wouldnt be this problem.You dont buy a $300k house and only put up 5% down if your lucky. How do you expect to carry that kind of mortgage and your everyday expenses.

Mike K. wrote on October 06, 2007 02:41 PM: The real problem in the Las Vegas market started when the speculators/investors started buying up properties. If people who were actually going to live in the homes had bought them instead the prices would have risen at a much more realistic rate and the prices today wouldn't have taken such a big hit.

Rjack wrote on October 06, 2007 02:08 PM: There were good points made and not some good points made by the readers. I see three problems with the housing market in Las Vegas.
1. Elected leaders allowed builders to build and build and build with no limits. The builders began to reduce lot sizes and squeeze as many homes on these small lots as possible, reducing the quality of homes and builder’s greed created these problem as well, all builders saw and wanted was more money in their pockets, so the builders would raise pricing to make more money and build and build. These builders had no concern for our community all builders cared about was making money.
2. The builders allowed out of state investors who would pay builder prices buy these homes, what ever the builders would ask to make a buck, and with no regard for the people who needed homes and wanted to reside in Las Vegas, the true buyers were not investors they were responsible buyers.
3. The media continues to repeat the negative stories about the sky is falling and repeat all the negatives about home prices and home sales in Las Vegas the media shares apart of the blame and has contribute to the overall problem as well.
It would be great if the media reported the positives with the housing market in our community? There is always some good in everything and everyone, report these things.

rg wrote on October 06, 2007 01:39 PM: Response to dj2: A lot or perhaps most of the overcrowding in Las Vegas, as in other major cities, is due to the uncontrolled migration of illegal aliens. However, we are finally beginning to see efforts by the federal and local authorities to remove and deport the illegal alien population which in turn will eventually have an effect on the overcrowding situation you describe. As to the type of jobs being created - true many of those jobs will be somewhat low paying but that is true in any major city. The point here is this: like it or not, Las Vegas is not only a national attration but a tremendous international attration and that is what is driving all the new construction, related services, homes, etc. Because of the somewhat limited space in the Las Vegas valley, many or perhaps most of the present and future home construction will be midrise and high rise type which is what happened in Chicago, New York City, Boston, etc. This type of housing obviously has some drawbacks but it is the only way to handle continued growth and properity in the great city of Las Vegas

DJ2 wrote on October 06, 2007 11:33 AM: rg,

If a lineup of new properties is pending with the resulting surge in jobs, services, etc., doesn't that mean squeezing even more people into the Las Vegas Valley? Part of the deterioration of the lifstyle here in Vegas is directly due to overcrowded streets, schools, public services, etc. along with limited resources of ever more costly energy and water.

The only way life looks brighter here is if a person has the financial ability to move out of the central area to one of the high-end communities edging the valley and that, of course, takes a higher income than most of those newly created jobs will be paying.

I tend to agree with Mr. Valentine, for the average worker and for anyone who lives on a fixed income, Las Vegas may have seen its better days.

D wrote on October 06, 2007 11:07 AM: These prices are still way overpriced!

Wait

DJ2 wrote on October 06, 2007 11:05 AM: Hey, Viva La Raza, are you for real? You're making me laugh!

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