Arizona-based Meritage Homes is pulling the plug on the Vegas market. Who can blame them with prices down 60% from the peak of the housing boom. 58% of all mortgaged properties in Nevada are underwater, and the prospects for a meaningful recovery are pretty dim.
Fortunately, things certainly aren't that bad here in the Houston area. That being said, we're likely to feel the headwinds of Europe's coming slowdown in the year ahead. Builders in the Houston area will likely keep their inventories thin into 2012 to maintain some semblance of pricing power. One of the key supports of pricing in Houston's stronger market areas has been the relatively low inventory levels. Any builder who sticks their neck out looking for a meaningful market recovery will likely be disappointed.



