Market trumps initiative for the time being
March 5, 2007
The market has done what the Sustainable Growth Initiative has only dreamed of doing. It was only a matter of time before skyrocketing home prices and increased inventory conspired to bring the home sales market to a screeching halt.
That’s the way it goes in Nevada, big boom followed by a bust. As large a pool of potential buyers as our neighbor to the west is, occasionally folks figure it’s better to stand pat than to gamble on moving to Nevada.
It still surprises us that there are those who believe SGI is responsible for the present slow-down. The initiative has never been law in Douglas County and frankly anyone looking at the regional real estate market saw the same thing happening in places where no growth controls were in place, such as Reno and Las Vegas.
The market is already starting to correct itself, with home prices dropping slightly as fewer and fewer buyers show up.
Douglas leaders remarked on the level of ill will over growth shown by those attending their meeting on Thursday. While there has long been bitter debate over growth, perhaps the recent slowdown is feeding the rancor.
Approving any growth cap is going to be just the opening shot in a long battle to determine the future of Douglas County and if the recent past is any example, the battle will be brutal.