WHILE AGGRESSIVE PRICE INCREASES have defined the booming Vegas housing market in the past 18 months, Pulte Homes is abruptly switching gears, slashing its new home prices anywhere from 5 percent to 28 percent.
The supply-and-demand equation has shifted, according to Sheryl Palmer, Nevada area president for Pulte Homes. As a result, the Bloomfield Hills, Mich.-based builder cut prices in 18 of its 23 southern Nevada developments and all four of its Del Webb communities in the area.
The company also lowered its third-quarter and full-year earnings expectations, citing sluggish sales from its Southern Nevada region.
According to Southern Nevada Home Builders Association spokesperson Monica Caruso, the Las Vegas market is experiencing a natural correction to the fast and furious pace it has seen in the past year. At the end of 2003, there were 102 builders working in the market, and Caruso predicts that many of them will also cut prices in the near future.
Source: Home Builders Research Inc.
Learn more about markets featured in this article: Las Vegas, NV.