Developers Seek to Build their Mini Cities as Las Vegas Housing Market Gets Better

Real Estate Investment

Real estate developers all over Las Vegas are beginning to breathe new life into their master-planned mini cities as the housing market gets better.

These housing communities that are currently in the works went bankrupt, were seized through foreclosure, or were left on the drawing board during the recession. However, developers are being more careful these days. The trend is to build these master-planned communities in phases, schedule construction and development for at least a decade, and only start building when there are people who have agreed to buy them.

If these massive communities take off, they will be bringing up to 45,000 new homes in Southern Nevada.

However, since prices of homes and borrowing costs are rising, many buyers throughout the valley are pulling back this year.

Local builders sold roughly 1,700 new homes through April, down 25 percent from the same period last year, while the median sales price of April’s closings was $287,000, up 20 percent year-to-year. The average interest rate in April for a 30-year mortgage was 4.3 percent, low historically but up from 3.5 percent a year earlier, according to mortgage-finance company Freddie Mac.

In spite of the seemingly weak start, developers are hopeful that business will bounce back.

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