Las Vegas Real Estate Bubble

New homes aren’t the only movers and shakers in the booming Las Vegas real estate market.

Las Vegas resale homes have also increased in median price. At the close of 2004, the median price for Las Vegas resale homes was approximately $251,000. This was an increase of 39% from the previous year’s median resale values, or an increase of about $97,000. That is a huge increase over such a short period of time.

As a result, sales of Las Vegas resale homes were down about 12% in January of 2005, as opposed to the same time last year. However, the number of resale homes available increased almost 30% throughout 2003 and into 2004. Even though the percentage is now down, it is still up overall. Apparently, current homeowners are not as hasty to sell as in 2003 and want to hold onto the increased value of their homes.

Additionally, new home median prices have increased almost 40% in the same time frame. New home prices have increased 148% since 1990. This amazing growth is due to the economic success of Las Vegas and its huge draw of tourists and new residents. Anywhere from 5 – 6,000 people move to Las Vegas every month. Projections indicate that this rate of growth will continue for at least the next decade.

Keep in mind that these prices are median prices, representing the middle number of all the houses sold in ranking order. The average prices of Las Vegas resale homes and new homes are somewhat higher. While the economy continues to grow and new jobs are available at an increasing rate, the housing market will continue to be at a premium and likely continue to appreciate in value over 2005.