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Oct. 16, 2008
Copyright © Las Vegas Review-Journal

Local builder closes sales offices, citing credit mess

By HUBBLE SMITH
REVIEW-JOURNAL
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Concordia Homes of Nevada has closed its sales offices and will be refunding deposits on homes that have yet to start construction, an industry source said Wednesday.

The Henderson-based home builder has not gone out business and has not filed for bankruptcy, but it will not be selling any new homes, Home Builders Research principal Dennis Smith said.

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    • Concordia Homes, established in 1977, has built homes in Las Vegas, Henderson and Pahrump, as well as Bullhead City and Avondale, Ariz.

    "Our success has always been based on providing people with reasonably priced homes in safe and tranquil communities that are ideal for raising a family," the company Web site advertises.

    Concordia plans to release a statement today.

    Kimball Hill Homes and Tousa Homes filed for bankruptcy this year. Tousa Homes did business in Las Vegas under the Engle name.

    Smith said Concordia is among several builders that have closed out subdivisions in the Las Vegas Valley, including Pardee, Pulte, KB Home and Richmond American.

    "This is not strictly about demand," he said. "This is also credit. You've got buyers and you can't get loans approved. What do you do? You close subdivisions."

    Concordia has five active subdivisions in the valley with homes priced from $195,000 at Aviano to the $300,000s at Sommerset, Nevada's only solar-powered community.

    Home Builders Research reported 829 new-home closings in August, bringing the year-to-date total to 7,324, a 48.3 percent drop from a year ago. The median new-home price of $256,000 in August is down 24 percent from a year ago.

    "Builders will not sell homes at a loss," Smith said. "The new-home market has been bouncing along waiting for the resale segment to catch up. Unfortunately, the deepening credit mess is causing a lot of hesitation and insecurity with consumers."

    Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.



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    Richard Blum wrote on October 16, 2008 10:38 PM: Builders will not build at a loss, nor should they. This does, however bring up an interesting thought. Are they willing to use newer materials that are more cost effective? I think that is where this has to go. The old ways - although job, tax, and profit createing are DOA. The credit markets will take 3 to 5 years to shake out to just par. Then, they will adopt an old axiom of 'penny wise and pound foolish'. Or, if you were from Missouri, 'show me what I get for my money'. This shift back to 'value in exchange' will, by its very nature, demand newer products. Perhaps a base concrete pad that can have many different wall features, chageable at will (by skilled labor)out of plastic or fiberglass with superior insulation. Perhaps a return to copper piping. Perhaps solar roofing shingles - using Solar Film - now being tried in Germany (manufactured by Americans) will make it to our markets to produce excess electricity. One thing for sure, change is necessary to move forward. Brick and Mortar and Frame and Stucco are, for all intent and purpose, DOA. Lastly, the builders have to drop their mortgage companies. The stories of how people got screwed by these entities, regardless of reality or fiction, are working their way through grand jury rooms throughout the US as I write this. When this bomb hits the ground it may take those builders left standing with it. So, why not do articles on change, how to implement it, and invite comment on how to begin - as opposed to how the poor old boy network is falling on hard times. Rallies are fun. So is change.


    J Barikhan wrote on October 16, 2008 12:52 PM: Las Vegas Real Estate in Bargain Territory!
    Brand New Homes in Las Vegas North West with Minimum Bids starting at $99,000.
    All Bidding will be done ONLINE.
    The homes are available for viewing now and until the bid deadline NOV 6th.
    See www.FRE.com/295Z1 for more details...


    supercub wrote on October 16, 2008 12:27 PM: Yes, you can slap the blame right smack on Hairy Read, Nancy Polution, Barney Frank a host of others. They all wanted to put people in homes they could not afford and now they are giving them back. Wake up!


    hilobamacaine wrote on October 16, 2008 11:30 AM: well thanky mistuh tom i sure iz glad that yuh still got yore rednecks to laff at now that all yore colerds wont let you laff at em anymore


    John Dough wrote on October 16, 2008 04:41 AM: Harry's not smart enough to know how a car breaks down.


    Tom Best wrote on October 16, 2008 03:36 AM: Check Realtytrac.com. I entered Clark County as my search parameter, and came up with 35,000 distressed or bank owed or auction homes. Yes, it's a big county, but this is a pitiful time. Where do all the defaulters go? Back to Cali or back East I guess....And of course, our Rednecks will blame Harry Reid for this mess. If their car breaks down on Boulder Hwy, it's Harry's fault....