Las Vegas Real Estate Prices – January 2008

Average Joe Median Price Index

Out the gate in 2008 median prices in the broad market continued to tumble.  Given some stability in the lower end of the market, most of the price declines affect the broad market is in the upper end.  Here are median numbers in the mls for the broad market.

January Median              vs. December         vs. Jan 2007              vs. Peak
$249,900                              -3.9%                     -17.25%                -20.67%

A 3.9% drop in median prices follows last month’s 4.7% plunge in the broad market.  Prices continue to slide and that can be a good thing for the market.  As we see further declines in the value of Las Vegas real estate, more and more buyers can now afford to buy homes and investors are returning to the market again.  Transactions, not values will help the industry rebound.  The more closings in the market place the more loans needed, more escrows to close, more homes to be built more all result in more employment.  More employment creates more buyers and fuels the cycle more and more.  So, is there sign of this?  Possibly.    What about the average Joe and their Las Vegas area home?

A typical home owner of a 1500 to 2500 square foot home is facing some very real challenges today.  Here are some numbers:

1500sf home
January Median              vs. December           vs. Jan 2007             vs. Peak
217900                                  even                      -17.9%                  -26.1%

2000sf home
January Median              vs. December            vs. Jan 2007             vs. Peak
264950                                  .9%                         -23.2%                  -26.6%

2500sf home
January Median              vs. December           vs. Jan 2007            vs. Peak
306950                                  2.6%                      -25.9%                  -34.8%

January last year showed strength as well as the holiday hangover wore off.  Will this be a one month reprise or is the market nearing the bottom?  We’ll see.  This I know as I write this, a 2500sf home at $100 to $105/so is selling and doing so quickly.  I can’t wait for next month’s numbers.

Tim Kuptz
RE/MAX Advantage
www.lasvegasrealestatewire.com

 For exclusive use of RE/MAX Advantage agents.  Copyright 2008