Predicting when a market hits bottom requires significant skill, experience and intestinal fortitude – we believe the Las Vegas Real Estate market has hit bottom! No guts, no glory – any Las Vegas REALTOR worth their salt should be able to shed some light on this for you! Here’s the back story from our perspective.
In June of 2008 the influential House Prices in America study from the noted research firm, Global Insight and the Ohio based bank holding firm National City Corporation showed Southern Nevada’s (including Las Vegas) first move toward a housing market undervaluation since both companies launched a joint report in 2004.
The median Las Vegas Home price in Q-1 of this year was $232K and the median home price in Las Vegas fell 3.1% (approx) below the value that historical market trends establish as healthy or sensible, according to the House Prices in America analysis.
Contrast these numbers with a comparison of 22.9% overvaluation the market experienced in the first quarter of 2007, with a median price of $286K. Throw another hard number in the mix; fourth quarter of 2007 gave us a $259K media price and a 9.2 percent overvaluation. Finally, the Las Vegas Real Estate market had its highest valuation in the third quarter of 2006, with an overvalued percentage of 30%. The trends are obvious to us as a Las Vegas REALTOR with market experience!
These folks aren’t Las Vegas Realtors, they are statistical and market analysis firms and we think their numbers are underscoring what we’ve been telling our clients for several weeks and months. The trend is pretty obvious – we think the market is scraping or at bottom.
Here is a quote: Today’s valuation statistics mean housing prices in Las Vegas have returned to their 23 year “historic norms” based on household income, population density, interest rates and other factors,” said Richard DeKaser, chief economist for National City.
We’ll post some more numbers and observations in our Blog later this week from this important report. Suffice to say for now, as a market honed Las Vegas REALTOR with some grit, we are calling this market at bottom, or close to it. Pass the salt………….
