Despite the fact that data firms like Fiserv are projecting the home values in the Las Vegas area will fall by another 16 percent by next June, investors and home builders in the area are starting to feel optimistic. So optimistic, in fact, that they’re moving in on deals now rather than waiting for prices to truly hit rock bottom. In September, 11 percent more homes were sold this year over the same period of time last year, and there is only a two-month supply of single-family homes on the market[1]. In addition, the metro area has added 200,000 new residents since 2006 and “as the economy recovers, the upside in the market there will be significant,” says business executive Adam Coffey, who purchased a home in the area last year.
Recently, the Nevada Division of Housing (NDH) has begun awarding tax credits for developers to build new apartments and condominiums[2]. Critics of this move fear that this will artificially extend the housing crisis in the area because new construction will prevent existing properties from being effectively converted to rentals when individual ownership may not make sense. Do you think that Vegas is really on the way to recovery, or will government programs slow it down?
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[1] http://money.cnn.com/2011/11/09/real_estate/vegas_housing_market/index.htm
[2] http://www.lasvegassun.com/news/2011/nov/22/nevada-still/