Many In The Biz Believe That Pulte Homes Got It Wrong

Pulte Homes seems to have put many investors, as well as the Las Vegas real estate market in a bind. Pulte Homes recently announced that they were dropping the prices on their newly constructed homes by 25 percent instead of the previously announced 5 percent.

This has created many headaches for local agents working in the Vegas area. Many of them have been fielding phone calls from potential buyers asking when other newly constructed home prices will fall.

With no other companies following the same path as Pulte Homes, many buyers are trying to wait them out. Local experts are outraged at the move Pulte put on the market.

According to Dennis Smith of Home Builders Research, Pulte had been too aggressive with its pricing and was $60-$80 per square foot above competing product.

Smith also state that, "Many of us thought that they went overboard and failed to realize the consequences of what would happen once the out of state investors left the area".

Smith also points out that Pulte was slow to restrict investor home sales and now is paying the price with new homes that have never been lived in lining the streets and available for sale against other competitors who are also releasing newly built homes.