Feb 10
21
This morning, the Las Vegas Review Journal was kind enough to point out that prices of sold homes in every Vegas area Zip code declined in 2009. Some areas only declined 10-11%, while others saw drops of 57-60%. On average, prices dropped 23%. Be sure to click on the map insert for a detailed view of every Zip code. One thing worth noting is that “ZIP code 89146, south of Charleston Boulevard between Rainbow and Decatur boulevards, was the only area with positive appreciation (3 percent) in 2008. The median price dropped 57 percent last year to $110,000.”
However, Larry Murphy, President of the company that provided the data, sees some signs for optimism. First, there are positive technical indicators if you were to put prices on a chart. Second, new homes simply can’t be built for what existing homes sell for in Vegas right now — if your home burned to the ground, you would be better off financially buying a new place and bulldozing the old place than trying to rebuild! And finally, there is tremendous opportunity for investors to purchase property and having positive “cash flow” — bringing in more money in rent than the property costs to maintain. While Mr. Murphy does think prices will stay near current levels for the rest of the year, he sees our market as “undervalued.”
