Las Vegas Housing Prices Suffer
An article posted on Housing Doom takes a look at the decline in housing prices in Las Vegas in comparison with prices in 2004. According to the article:
In Business Las Vegas said last week: it won’t be long before prices return to the levels of late 2004 when it comes to the existing home market.
The median price for a single-family home in October was $274,725. This is the lowest the median price has been since May 2004 when the median price was at $266,000. Appreciation is down 4% month-to-month and down 11% year-over-year- the largest year-over-year decline we’ve seen since the market started declining.
974 homes sold in Las Vegas in October, only a slight decrease from September’s 990. However, this is down 42.3% year-over-year from 1,689 in October 2006.
It’s getting tougher to borrow at the moment– the Wall Street Journal is reporting that even for prime loans, 40% of lenders are reporting tightening their standards in the past three months. Between tighter standards, falling prices and spooked buyers, the market is set to fall even further. Expect Las Vegas to make it’s way even further back in time.
Surely not all of the housing woes in Las Vegas can be extrapolated to the entire nation. But they may very well be an indicator of where the rest of the housing markets are heading. Las Vegas housing prices are back to where they were before the housing boom, and are not expected to jump back any time soon. The end of the housing crisis is a long way out of sight if similarly large housing markets follow in Las Vegas’s path.
It can be incredibly difficult for a home owner to remain inspired to pay off mortgage loans when they realize that their home is worth half what they paid for it
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