Housing Setback in Southern Nevada
The housing market through Las Vegas is currently experiencing a setback, with some layoffs in real-estate related jobs. However, the setback, as explained by some analysts may not be far-reaching.
According to Don DelGiorno, president of KB Home's Nevada Division, they are adjusting to the market position. The market is strong and the job market is great. However, he pointed out that they needed some time to correct this current situation. KB, considered as the No. 1 Builder in Las Vegas is expected to fall short of last year's record.
Dennis Smith, president of Home Builders Research, said the layoffs are seen as normal scenario after an upside cycle of the housing projects. He said the excess of staff at this point resulted from the additional staff hired during the busiest cycle.
Washington Mutual, a home mortgage company with a large presence in Las Vegas, laid off 1,400 workers last week as part of their cost-cutting strategy. Nevada Title Co. has also cut its staff by 25 percent. The company experienced booming seasons in 2002 and 2003 and had employed 300 people back then.
Todd Hahn, Division Vice President for Pulte Homes, told about hearing of layoffs at other custom home builders. However, he informed that this has not happened to Pulte. Hahn said that the company would rather stretch the efficiency of the current staff, comprising 600 employees. According to him, there has been no department that he thinks they could operate without.
It is to be noted that the construction industry in Las Vegas comprises around 108,000 jobs. As construction has gone full swing on the later part of 2005, it is experiencing a slowdown at the recent months.
With a positive note, Director of the Center for Business and Economic Research at University of Nevada Las Vegas, Keith Schwer, said that the center's construction index is up 11.9 percent from a year ago. With this, stronger seasons in spring and summer could be foreseen.
According to Don DelGiorno, president of KB Home's Nevada Division, they are adjusting to the market position. The market is strong and the job market is great. However, he pointed out that they needed some time to correct this current situation. KB, considered as the No. 1 Builder in Las Vegas is expected to fall short of last year's record.
Dennis Smith, president of Home Builders Research, said the layoffs are seen as normal scenario after an upside cycle of the housing projects. He said the excess of staff at this point resulted from the additional staff hired during the busiest cycle.
Washington Mutual, a home mortgage company with a large presence in Las Vegas, laid off 1,400 workers last week as part of their cost-cutting strategy. Nevada Title Co. has also cut its staff by 25 percent. The company experienced booming seasons in 2002 and 2003 and had employed 300 people back then.
Todd Hahn, Division Vice President for Pulte Homes, told about hearing of layoffs at other custom home builders. However, he informed that this has not happened to Pulte. Hahn said that the company would rather stretch the efficiency of the current staff, comprising 600 employees. According to him, there has been no department that he thinks they could operate without.
It is to be noted that the construction industry in Las Vegas comprises around 108,000 jobs. As construction has gone full swing on the later part of 2005, it is experiencing a slowdown at the recent months.
With a positive note, Director of the Center for Business and Economic Research at University of Nevada Las Vegas, Keith Schwer, said that the center's construction index is up 11.9 percent from a year ago. With this, stronger seasons in spring and summer could be foreseen.
posted by realestatevegas | 7:16 AM
<< Home