Local builder closes sales offices, citing credit mess
Concordia Homes of Nevada has closed its sales offices and will be refunding deposits on homes that have yet to start construction, an industry source said Wednesday.
The Henderson-based home builder has not gone out business and has not filed for bankruptcy, but it will not be selling any new homes, Home Builders Research principal Dennis Smith said.
Concordia Homes, established in 1977, has built homes in Las Vegas, Henderson and Pahrump, as well as Bullhead City and Avondale, Ariz.
"Our success has always been based on providing people with reasonably priced homes in safe and tranquil communities that are ideal for raising a family," the company Web site advertises.
Concordia plans to release a statement today.
Kimball Hill Homes and Tousa Homes filed for bankruptcy this year. Tousa Homes did business in Las Vegas under the Engle name.
Smith said Concordia is among several builders that have closed out subdivisions in the Las Vegas Valley, including Pardee, Pulte, KB Home and Richmond American.
"This is not strictly about demand," he said. "This is also credit. You’ve got buyers and you can’t get loans approved. What do you do? You close subdivisions."
Concordia has five active subdivisions in the valley with homes priced from $195,000 at Aviano to the $300,000s at Sommerset, Nevada’s only solar-powered community.
Home Builders Research reported 829 new-home closings in August, bringing the year-to-date total to 7,324, a 48.3 percent drop from a year ago. The median new-home price of $256,000 in August is down 24 percent from a year ago.
"Builders will not sell homes at a loss," Smith said. "The new-home market has been bouncing along waiting for the resale segment to catch up. Unfortunately, the deepening credit mess is causing a lot of hesitation and insecurity with consumers."
Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.