In Nevada, Housing Market Slowdown Did What Legislation Envisioned

A Nevada Appeal editorial observes that the recent drop in Nevada mortgage demand and the slowdown in the housing market’s prices has done what growth legislation only hoped to accomplish.

The Sustainable Growth Initiative in Douglas County was designed to limit the Nevada housing market’s growth to perceived healthy levels.

But it was only a matter of time, the newspaper opines, before skyrocketing home prices and increased inventory conspired to bring home sales back down to a screeching halt.

That’s the way it goes in Nevada, big boom followed by a bust.

As large a pool of potential home mortgage applicants as our neighbor to the west (California) is, occasionally folks figure it’s better to stand pat than to gamble on moving to Nevada.

It surprises the Appeal editorial board that there are those who believe SGI is responsible for the present slow-down.

The initiative has never been law in Douglas County, and frankly, anyone looking at the regional real estate market saw the same thing happening in places where no growth controls were in place, such as Reno and the Las Vegas housing market.

The market is already starting to correct itself, with housing prices dropping slightly as fewer and fewer buyers show up. Douglas County leaders remarked on the level of ill will over growth shown by those attending their meeting on Thursday.

While there has long been housing uncertainty in this part of Nevada and bitter debate over growth, perhaps the recent slowdown is feeding the rancor.

Approving any sort of growth cap is going to be just the opening shot in a long battle to determine the future of Douglas County and if the recent past is any example, the battle will be brutal.

SOURCE: Nevada Appeal