Prior to the housing recession ten years ago, local builders were prominent in the Las Vegas Valley home development industry. During the downturn, these companies had to take a step back from building and regroup as many did not have the resources and capital to weather the crisis.
Some of these builders continued to build at a much slower pace and some went into hibernation – waiting for better days to come. Nat Hodgson, CEO of the Southern NevadaHomebuilders Association, stated “What many did they figured out what they could build. In some cases it was stripped-down homes.”
Most of the homebuilders today are in a better position financially and better equipped to handle changes in market conditions. Local homebuilders play an important role in the housing market. They will develop smaller parcels of land that the larger publicly held builders pass over.
The president of Pinnacle Homes, Frank Wyatt, says his company loves the 5- 10 acre sites. This company peaked in 2001 and 2002 with 154 closing each of those years with prices ranging from $300,000 to $400,000s. In 2010 Pinnacle bottomed out to only 12 closing for the year causing financial concerns.
During the years of a slow and steady comeback, Wyatt sought out smaller sites and built bigger homes on larger lots with more outside space. The homes were priced to compete with similar homes that were in foreclosure. During this time, the team at Pinnacle was able to fine-tune the product for the upscale market with prices in $700,000 to $1 million range.
StoryBook Homes is another homebuilder that had to adjust with the housing recession. Wayne Laska, head of the company, when talking about the housing recession stated “We weren’t quite sure what is was, but something was happening. We stopped buying land. By 2011, the company had to sell off 90 percent of their lot inventory. Today the company is much leaner and diverse. Their portfolio consists of a homebuilding unit, apartment complex division and a commercial site.
Tom McCormack headed up Astoria Homes in the early 2000’s and the company ended in 2009 when they lost the land they owned to lenders. In 2013, he started TouchStone Living building more customized homes on larger lots. These homes today sell for anywhere from $600,000 to $800,000.
Keep in mind that whether you are interested in buying a home or selling a home, a Realtor should represent you– this person is working for your benefit and will help you navigate through the buying or selling process. I have thirteen years in New Home Sales and sixteen years in General Real Estate sales!
Thanks and make it a terrific day…………Robin