“It’s like 2006 all over again — with a few twists.” That was the first line of a recent article in the Las Vegas Review-Journal, referencing the resurgence in new home construction. According to the article:
” Henderson’s 2,000-acre Inspirada master plan is launching a Saturday (August 2nd), sales blitz of pre-recession magnitude, with 16 new model homes in nine subdivisions by KB Home, Pardee Homes and Toll Bros.”
According to Dennis Smith, president and CEO of Home Builders Research in Las Vegas:
“No master plan has debuted so many neighborhoods and models in one day since the downturn.” “You’d have to look to the days of 30,000 local building permits a year — back in 2005 or 2006 — to see this kind of single-day sales event. The confidence boost that results from the opening could have ripple effects across the housing market.”
This news could also be good for those homeowners that have been underwater with their current mortgages.
“There also may be more people able to buy. Boomerang buyers — homeowners who went through short sale or foreclosure four or five years ago — are at last able to purchase again with programs that give breaks to consumers with little credit trouble beyond a home default. Smith estimates half of buyers at Inspirada and other new developments may be boomerang buyers.”
The way John Restrepo, a principal with Las Vegas analysis firm RCG Economics, sees it; “We’re [Las Vegas] definitely on the mend. The builders see that fact and are moving forward with Inspirada,”
When building starts picking up in Las Vegas, all kinds of other businesses start doing better as well. Increased business for many companies also means increased Accounts Receivable just when they need more cash flow to buy more products or to pay more wages. Not having the cash available often means slowing down the new business that is coming in, or worse yet, even losing that business along with the associated profit opportunity. It doesn’t have to be that way. Financing based on those Accounts Receivable can often be the solution to the “growth problem” many businesses are having right now. BUSINESS FINANCE CORPORATION provides Accounts Receivable Financing to all kinds of businesses in Nevada and California, even Contractors.
How do you see this resurgence in new home construction?
Have you seen improvement in the Las Vegas economy with your business?
Send your comments to me, David Cabral at Business Finance Corporation; we would like to know how your business is doing.
Your Partner in Success,