Home prices peaked in the Las Vegas valley in early 2007. As the year progressed,The Bottom is Near if not Already Here in the Las Vegas Housing Market Articles foreclosures rose at a rapid and steady rate, but median home prices stayed relatively stable. This was a result of home owners and investors who, not wishing to face the reality of a declining market, left their homes on the market without lowering their listing prices, even as very few of them actually sold. Inventory grew until the flood gates finally burst. Since then, median price highs of around $300,000 at the end of 2007 have fallen at the rate of approximately $10K per month to the current median price of near
High foreclosure rates nationwide have created excellent buying opportunities across the U.S. But Las Vegas is truly leading the pack. 1 in 76 homes is currently in some stage of foreclosure in the Las Vegas market. (RealtyTrac) This is more than double the amount of the nearest rival, Florida at only 1 in 173 homes. Arizona, California, and Michigan round out the top 5. Of all home sales in the Las Vegas valley in October, 86% were foreclosures or short sales.
Steve Bottfeld, a real estate analyst with Marketing Solutions discusses a 3 point theory of how to gauge the bottom of a real estate market. First, he looks at the inventory of homes listed on the local Multiple Listing Service (MLS). Second, he evaluates the volume of business which is simply the number of homes being sold in the marketplace. Lastly, he considers the average median price of homes. Bottfeld states that once the inventory stops increasing, the volume begins trending upward and the median price stabilizes… you have found the true bottom of the market. From the data we are now considering for the Las Vegas valley, it appears that the elusive bottom may be right around the corner if not already here.