Mesquite housing market cools

Mesquite has been lately called a bedroom community of Las Vegas. And rightfully so. It's only about 90 miles away, a straight shot northeast up the freeway, and definitely has its own small-town aura that is coveted by so many. Pahrump to the west and over the mountain range is the other one.

What comes to real estate, it has been linked to the metropolis all too closely, too. And this one is easy to prove. When the housing market boomed here a few years ago, Mesquite's followed right behind it with the same type of over-heating. And now, as if on cue, it's nursing the very same ills that the soft market has brought to Sin City.

Generally home values there are somewhat lower, but still within striking distance. For the second quarter, the average home price fell to $249,659 when a year ago it stood at $291.379, reports Mesquite GMAC. That amounts to about 14%, which can be called a sizable drop. Inventory is pushing steadily up and days on the market is getting longer, the classic signs of a weakening market.

On the positive side, home building permits grew slightly to 189 through the first six months, compared with 186 last year. And sales as a whole moved up by about 10%, to 149 homes in the second quarter from 135. Although there are a few brighter spots, the overall trend points to a correction that can last for a while.

photo by goobersmyn