Some Are Predicting Trouble For The Housing Industry

While there is an increase of construction on new homes and apartments, local experts are predicting trouble for the housing industry.

Construction of new homes increased by nearly 7 percent in November; with a seasonally adjusted annual rate of 1.588 million units.

However, for the 10th consecutive month housing application numbers dropped. This is a strong indicator that the housing market is in trouble according to local Las Vegas experts.

With housing applications dropping and the number of permits at all time lows in the area, builders are scratching their heads.

However one doesn't have to look hard for the source of the problem according to Mark Wynne, a local Las Vegas real estate agent. He says the problem is the increase of supplies and construction costs.

According to Wynne when you mix high costs with a buyers market things aren't usually going to go the way many people would like.

Also another problem is energy costs, which were up 6.1 percent in the November survey of wholesale prices.

Natural gas for home use, home heating oil and diesel fuel costs all posted big gains at the wholesale level and are all contributing to the troubles that are besetting the housing industry.