Slashing Prices

Las Vegas the home of sin was once one of the hottest real estate markets in the US. However, builders are now having to cut their prices to encourage people to purchase their homes. Last year one of the developers KB Home decided getting stuck with a huge inventory was more of a risk than drastically cutting their prices. Two story 1,400 sq ft homes that started at 320,000 last year are now listed for 270,000.

“We try to make prudent decisions regarding pricing,” says Jim Widner, the regional general manager for KB Homes. “Prices are going to rise and fall over the short term, but long term a home is one of the best investments.”

For the people that bought their homes a year ago at the height of the boom these discounts aren’t such a good thing. Tammy Elder is one of these people who bought her home a year ago and is suddenly realizing that her home is worth a lot less, making it hard for her to refinance or even sell her home. “When we first moved here the housing market was incredible,” says Tammy. “Unfortunately we bought a house that was overpriced, and we don’t know if we’ll ever break even.”

Read more about The sinking housing market in Nevada.