Market Conditions
Las Vegas Overpriced?
By Al Tamura, Broker

Two national surveys have rated Las Vegas homes as being overpriced by 28% and 41.8% respectively.

The Local Market Monitor ranked Las Vegas as the #22 city for being overpriced in the nation.  The company found that home prices were 28% overpriced based nationwide prices and local income factors.

The second company, Global Insight/National City, ranked Las Vegas #50 and found that it was 41.8% overpriced.

These companies used land scarcity, interest rates on mortgages and relative income of buyers to determine if homes were overpriced.

Local experts did not agree with the findings because the analysis did not include (1) job growth and (2) population growth.  These are two key areas where Las Vegas leads the nation.

The local experts also have stated that the current home prices have not "burst the bubble" and have only dropped  slightly.  If mortgage rates hold steady and the growth continues Las Vegas can expect to sustain the current prices.