Las Vegas Real Estate News: Home Prices Projected to Drop Further
May 3, 2016 08:13 AM
Home values all over the country are expected to drop 2.2 percent in the second half of the year.
Las Vegas luxury real estate prices are expected to fall six percent. Home values here have dropped fifty seven percent from their peak from year 2006.
Las Vegas has been greatly affected by foreclosures and the loss of tourism and construction jobs. This year, over seventy percent of owners of luxury properties in Las Vegas owe more on their mortgages than their properties are worth.
In August, median new-home price increase 3.3 percent to $218,000, while resale median price climbed 4.3 percent from the same month last year.
In 2009, forty to fifty percent of home sales were recorded as cash transaction.
While prices rose nearly seven percent nationally from their April 2009 bottom, they remain nearly twenty eight percent below their July 2006 peak.
Most experts expect around five million real estate properties will be purchased this year. That would be aligned with 2009 and just above 2008 level. The level of foreclosures, job concerns and weak demand from home buyers have exerted down pressure on home prices.
Optimistic first-time buyers and investors are buying luxury homes for sale while the prices are on the continuing slide.