In Business Las Vegas said last week: [Hat tip Judge!]
Las Vegas housing analyst Dennis Smith says it may be 2004 all over again for the valley’s housing market.
No, he’s not saying home prices will rapidly appreciate as they did that year and in 2005.
Smith says it won’t be long before prices return to the levels of late 2004 when it comes to the existing home market.
We didn’t have long to wait.
The Greater Las Vegas Association of Realtors [GLVAR] has released their October numbers. Las Vegas, welcome back to 2004.
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:
This is not adjusted for inflation, and prices often include large incentives on the part of sellers, so this figure does not necessarily represent "same house" appreciation.
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.