Las Vegas Real Estate Affordability is certainly driving our market hard right now. The flip side to the pricing erosion experienced in our “foreclosure driven” market the last eighteen months has certainly been the levels of affordability we are now experiencing. We’ve been pointing this out for months.
Public Land Impact on Las Vegas Real Estate Affordability
One of the factors impacting affordability of Las Vegas Real Estate is our limited available public land for development – approximately 80% of the surrounding land around Las Vegas is controlled by Federal and State Governments as parks, recreational areas, military bases, etc. There is simply no way much of this land will ever be developed unless State and Federal governments change public policy in some radical manner.
Las Vegas Real Estate Affordability
What makes Las Vegas Real Estate so Affordable now? Much of our inventory is priced at one fourth to one half of where it was many years earlier, with a median Las Vegas Home Price of $125,000., very close to 1998 levels! The perception in many peoples’ minds Las Vegas Real Estate is very affordable, especially those that have been watching our pricing closely. So, perception is reality and vica versa.
Another aspect of the equation to study when reviewing Las Vegas Real Estate Affordability continues to be demand. We are seeing solid and consistent demand for Las Vegas Real Estate from savvy investors who can snap up a profitable investment here in Las Vegas that has a better projected return than via the stock market, as an example. Also, the recent extension by the Feds of the First Time Homebuyers Tax Credit is continuing to drive sales.
Where’s the Bottom?
No one can be 100% that they can “call” the bottom of the Las Vegas Real Estate Market. We think it bottomed out 4-6 months ago and have been putting out blog and tweet posts to that effect. A good underscore for our position is the minimal price reductions that we have seen for the last four months and/or equally modest uplift in some home prices.
You have to also look at our Monthly supply of Las Vegas Real Estate which is at 2.7 months and the fact that we are seeing on average 6-8 offers per REO or Foreclosed home. Hope this gives you a much clearer picture of Las Vegas Real Estate Affordability.
