New homes sales volume up as prices come down

National sales volumes are reported as being as high as 16% in April due to the drop in prices builders are accepting according to the Real estate journal (part of Wall Street Journal) article posted by Jeff Bater. The report shows that the builders are continually more interested in moving product than having it sit.

Very reminiscent of how in Las Vegas in 04, 05 the builders drove the prices up by limiting the number of available units. Don't get me wrong, they were cranking out houses faster than a target maker at a Rosie Odonnel shooting range. They did however have a minimal unit release per phase, allowing them to increase prices more rapidly and more often. Now this is not to say the builders were the only cause of the increase in median prices at that time of over 40%, (again speaking specifically to Las Vegas/Henderson, 2004, 2005), but the re-sale home sellers also jumped right into the feeding frenzy as well.

Oh how the tables have turned!!! Now we are seeing the builders dumping inventory with offers of $20,000 in incentives, paying closing costs and yup, dropping prices...though the tactic we see in Las Vegas is more of the massive incentives and upgrades, along with offering the general real estate agents they didn't want to see in the 04, 05 days higher commissions for bringing in their clients. For the re-sale seller its pretty tough to compete with those terms. Re-sellers are once again having to follow suit and drop prices, or offer incentives. Above all, any home on the market has to be immaculate since the buying population seems to be staying quite cautious.

Re-sale stats in Las Vegas to this point don't reflect the National New Home sales stats at this point. As of today, in the Las Vegas/Henderson market, re-sale detached single family volume is off by about 8%, but the average sales price is up about 5% from $389,626 to $409,646. Condo/Townhome is up slightly in volume, but down in average prices about 4% from $259,819 to $249,648...these are incomplete numbers for May, check back at the beginning of June for the actual run down.

Have a great memorial day weekend!!!!

Thanks to all the vets and active service personnel for the sacrifices you make and have made for all of us!!!