Even in the Southwest, Housing Slowdown is Hurting SalesAugust 2007
Article Date: 08-01-2007
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Equipment dealers in Nevada are experiencing a drop-off in activity compared to last year.
North Las Vegas-based Apco Equipment President Dallas H. Moyer says one of their main products, Kawasaki wheel loaders, are off 50 percent at his dealership and more than 66 percent in Clark County.
"It is directly related to the housing market," he said. "We had so many investors coming into the market a couple of years ago when homes were hitting 50 percent appreciation."
Now, thousands of homes are sitting on the market with up to a third empty, causing a sharp slowdown in new home construction.
"Until we can liquidate some of the homes that are sitting vacant, we're in for a rough spot," said Moyer. "It's not as much fun as it used to be."
However, commercial construction in Las Vegas and the entire Southwest is still extremely strong, and the highway and mining sectors in the region are also going strong. New Mexico's Governor Richardson is continuing his aggressive highway rebuilding plan while Arizona's DOT has many projects on the board.
Moyer remains optimistic.
-Scott Blair is editor of Southwest Construction magazine.
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