Market activity is picking up. Last week was the the most active since the first of the year in new pending sales. With a significant increase in listing inventory (new listings to the market) our pending index still moved to more positive territory.
From a home builders perspective. Through the grapevine I am aware that a large home builder in Las Vegas expects the resale market to make a rebound in the summer and continue through the end of 2007. Back in May2006 new home permits began to dwindle in response to huge inventory of new homes and forecasted reduced new home buyers. Well after 6 to 7months of building fewer homes and the standing inventory being absorbed, we are reaching a point where waiting for a home to be built will the only choice. This will push come would be new home buyers into the resale marketplace and some absorption of the resale inventory will take place.
The signs are all over as you look at new home neighborhoods. Smaller # of homes in each phase, virtually no spec, and in some cases, phase building is gone and builders are building all over a neighborhood once a home and lot are purchased by a buyer. There are some neighborhoods where a home might be finished and the lots on either side are not under construction. That is something not seen here for many, many years.
Look to a great 2007.