Does anyone else think that the big homebuilders are building too much? I was recently in Vegas. Its amazing to see all the new homes/condos everywhere. As far as the eye can see there is building now. I see it everywhere I go - not just Vegas.
What happens if the mortgage rates finally start to climb? Will the construction boom slow, or will there be skeletons of buildings rotting in the desert and elsewhere?
Entry Level Condos that are being built have waiting lists 200-500 people long. Higher priced homes in certain areas of town are also hot. Mid Level market has been flooded tho. I hear permits are down so if builders pause building mid level homes it will help level out our markets.
One reason why I don't think we will have skeletons of buildings rotting here is partially because we are close to running out of land. We still have our 10K out of towners moving here every month, boomers retiring left and right & a very strong economy. Condo conversions have taken apartment units out of service and the demand for rentals will be very high in two years as some people just starting out here cannot afford buying. There is still quite a dispairity between ROI for a rental unit but with supply dwindling and demand consistent single investment units are still good investments.
Sorry this reply is six + months late :D
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