Las Vegas homes for $60 SF?
Last year, I posted that LV Median home prices would ultimately revert back to $60 a Square Foot (link to Sept 2008 post). At that time, approximately 45% of LV homeowners were upside down.
Since that time however credit conditions have tightened, thousands of mortgages have reset and LV joblessness has exploded to an "official" rate of 13% - causing a tsunami of foreclosures and in-turn a continual fall in home values. Currently 81% of LV Mortgage Holders are Upside Down and there is no relief in sight.
Based on recent data from Housingtracker.net, which is a combined look at condo and single-family home statistics, Las Vegas's median home values are down 33% YoY and down a whopping 59% from the peak in April 2006 (April 2006 Median=$344,900; Today's Median=$142,500).
Take a look at the chart below (I used price data from the same site). Though the rate of price declines has slowed, prices are indeed still falling.
OK, nice chart you say - but it only illustrates sales price data - I thought we were discussing price per SF in LV?
Good catch - but I was merely pointing out price trend data above.
Let's now look at Median value per square foot (the Mid-point of the value of all homes in Las Vegas, per square foot - This is derived by taking the Zestimate for each home and dividing it by the homes square footage) extracted from Zillow just today - understand Zillow is not an exact science, but it's a good indicator nonetheless.
Bottom line: Valley-wide Median value - according to zillow - is $83 today, but note the direction of the lines from both charts - prices are still falling!
Here is a nice home for $58 SF (Link)
How about this one: .28 acres and 4,100SF for $57 a SF (Link)
Closing: though LV is not quite there yet with overall median price levels, many deals can be found in this $60 price range, and I have no doubt that (over time) my earliest forecasts will be met with ease.
Say what you wish to refute this post, but I have been battling differing realtor opinions and the naysaying optimists since I started this blog back in 2005 and (thus far anyway) I've been far more right than I have been wrong - but only time will tell.