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Nevada New Home Market Improves Despite Expansion of Repo Home Listing

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By : John Cutts    99 or more times read
Although the supply of distressed properties in Nevada as well as properties under repo home listing continues to edge out new houses, subdivision development projects are starting to emerge in the region. According to housing market analysts, subdivision developers and new home builders are seeing signs of improvement in the new home industry and are escalating their activities.

With repossession properties in Las Vegas and foreclosed homes in the rest of the state being offered in huge supplies and in such low prices, new houses have taken a backseat for the past three years or so. However, 2011 has shown signs of improvements in the new housing category as the Home Builders Research data showed that new housing sales are starting to record higher numbers.

According to the association, 90 new dwellings were sold in the region as of the second week of February. Out of the 25 new home builders in the area, 18 recorded positive net sales figures for that particular week despite tight competition from low-priced repo properties in Nevada. Meanwhile, several new subdivision projects have opened in the area and more are being started.

Last year, permits for new home construction reached 4,550, representing an 18% increase from the previous year. However, the new housing market's strong start to 2010 was stalled come July as the federal government's tax credit program expired and more properties entered repo home listing and foreclosure listings in the region. Home building permits reached its 2010 peak in March, when 730 permits were issued to home builders.

For the current year, market analysts are predicting that properties in foreclosure and REO property listing will continue to account for a big percentage of housing unit sales. They expect new home construction to slide slightly this year, with permits expected to hover near the 4,000 mark. They stated that the weak economy and difficult conditions in the labor market will continue to affect the new residential market.

Despite the presence of low-priced properties under repo home listing, several new housing subdivisions are being started in the region, including projects by Dunhill and Blue Heron. These developers believe that the Nevada market has been undervalued and investors will start taking advantage of investment opportunities in the market in the coming months.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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