A surprisingly positive article in the LVRJ highlights the undervalued nature of today’s Vegas housing market:
The latest House Prices in America study from Massachusetts research firm Global Insight and Ohio bank-holding company National City Corp. showed Southern Nevada’s first move toward housing-market undervaluation since the companies launched their joint report in 2004.
At $232,600 in the first quarter, the median home price in Las Vegas fell 3.1 percent below the value that historical market trends establish as sensible or healthy, the House Prices in America analysis said.
That’s compared to the 22.9 percent overvaluation the market saw in the first quarter of 2007, when the median price came in at $286,100.
A separate analysis generated similar results:
Researchers at Sullivan Group Real Estate Advisors recently assessed where local new-home prices would be if the Las Vegas market had appreciated at normal rates of 5 percent to 7 percent a year since 2002. They found prices would be around $256,000, a difference of just a few thousand dollars compared with the $260,000 median new-home price industry researcher Hanley Wood shows now, said Ken Perlman, vice president of Sullivan Group.