According to Brian Wargo, Las Vegas Sun writer, prices for new and resale homes continue to slowly but steadily drop. How far the prices will drop is a topic of speculation. No one expects the prices to reach 1980's or 90's prices. And there is hope that the current round of Strip development ($40 billion) will create another surge in growth.
Median prices for homes sold on MLS are down only 3.35% or $295,000 from June '07 and 6.3% down from the all time high of $315,000 in June '07.
However, there are now 26,000 listed for sale on MLS, way over double the norm of 3 years ago. Finding a buyer is very difficult right now. Only 25% of the homes listed are sold, down from 58% from 3 years ago.
In 1999, 78% of the homes for sale were within reach of a family earning a median income. Today only 14% of homes were affordable to those families.
So when is the turn-around? First, the prices need to become more affordable to more people. Secondly, the lenders must be able to make more loans with less restrictions. Lending practices tightened up their qualifications and that has strangled the buying growth.
2009 appears to be consensus year by analysts for the return to a growing, fluid market. A continued fall for the rest of '07. A selling of the excess inventory in 2008 will lead to a better start to 2009.
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