In a recent article published by the Las Vegas review Journal's Hubble Smith, Las Vegas in addition to several other metropolitan cities in the United States continue to see its home values prices plummet. According to Standard & Poor's/Case-Shiller 20-city index, the housing index fell for the sixth straight month and levels are currently below January 2000.
Oddly enough, the only housing market in which prices raised was Washington, D.C., where home prices gained 0.1 percent in value monthly. Since the subprime mortgage crisis in 2006 and 2007, Las Vegas has led the nation in widespread foreclosure. Currently, home prices are down 60 percent from their peak with no end in the near forecast.
According to Smith, the median price of a new-home is currently $188,900, falling 9.2 percent from a year ago, its lowest since 2002.
With no relief in sight and home values continually plummeting, Las Vegas is seeing a multitude of reaction in the market. Homes are becoming harder to sell; however despite the challenging market, homes are continuing to sell. Las Vegas has been privy to cash buying investors seeking the best deal possible. Many seem to feel that the key to selling a property is in finding the ideal realtor. One who can be honest with the homeowner and understands the local market and what is going on in the surrounding area.
Smith also reports that the Government's role in the housing crisis in under heavy scrutiny. Smith goes on to say that as long as the government continues to handle the foreclosure crisis in the manner it has, the demand won't meet what is required in order to stop prices from plummeting. Several economists have voiced their concerns that the best way to recoup from the current condition is to reform to old housing mortgage standards where homeowners were forced to put cash down payments of 20%. With Freddie Mac and Fannie Mae in federal conservatorship, mortgage servicers are out of options when it comes to offering struggling homeowners, said Leonard Tekaat, a retired analyst.
"Prices will continue to move downward probably for the rest of the year," said David Semmans, a U.S. economist at Standard Chartered Bank in New York. "The won't turn around until you have consumers feel that housing is genuinely cheap and until they feel a lot more secure in their labor-market position."
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