Review Journal Says Vegas Not in Real Estate Bubble
December 13, 2016
The Las Vegas Review Journal says the Las Vegas valley is not in another real estate bubble. Even though resale home prices have gained 5 per cent since last year, current median home prices are at $233,250 compared with $315,000 at its peak in mid-2006. Homes are priced well below the bubble prices leading into the Great Recession.
On the other hand, new home prices are much closer to bubble highs today. Median new home sales prices (October '16) are currently at $335,000 compared with $338,560 in August 2007. Today's new home prices are almost as high as bubble highs of 2007. The difference is the volume. In 2016 there were 6,273 new home sales compared with 39,000 sales in October 2005. There is a huge sales volume difference affecting the market. Today's lower sales volume will have a much lower price impact.