[bayview6]

Vegas housing on rebound.

Local housing market recovering, home prices increase - www.ktnv.com

Median price going up.


A great time to buy if you want a secure retirement.

[eventusstultorummagister]

Originally Posted by bayview6

That 13% vacancy rate is not entirely corrrect. It also includes seasonal or part-time homes. I own 3 houses and live part-time in all 3, and yet the people who figger vacant houses include 2 of my houses as "vacant."

Maine, Oregon, Washington, Nevada, Vermont, Florida have plenty of seasonal houses.

I would say that we are VERY close to the bottom in LV although we might stay there for some time. Some housing markets like San Diego and Washington, DC, the home prices are going up.

Originally Posted by bayview6

Vegas housing on rebound.

Local housing market recovering, home prices increase - www.ktnv.com



Median price going up.


A great time to buy if you want a secure retirement.

You "figger"?




The biggest long-term driver for housing sustainability is going to be local area incomes.

[bayview6]

Originally Posted by eventusstultorummagister

You "figger"?


Attachment 97466

The biggest long-term driver for housing sustainability is going to be local area incomes.

Yep. Income doesn't include cash by those moving to Vegas. Anyway, local income is enought to maintain the current housing level.

By the way, how do you explain the increase in the median price if we are looking at Doomsday? You "figger" Jesus is coming back?

[vtvette]

Originally Posted by bayview6

Yep. Income doesn't include cash by those moving to Vegas. Anyway, local income is enought to maintain the current housing level.

By the way, how do you explain the increase in the median price if we are looking at Doomsday? You "figger" Jesus is coming back?

We had an interesting conversation with a gentleman who frequents our area. He attempted to buy the house we purchased last Fall but, did not get a return call from the realtor handling the house. The house was only on the market a very short period of time so, we got it and he missed it. He sees us working in the yard on occasion and stops to chat. Very nice guy. He likes our neighborhood but homes rarely come up for sale here.

He is a cash buyer looking between $200k to $300k. He has been looking diligently for the past year now. He feels there was a time where there were great houses to be had and felt he has plenty of time to look but, says in his experience the market is full of crap right now. He said on most of the decent houses he looks at are seeing 15 offers!

This is, of course, one man's experience but he says he has seen a big swing in the market the past 4 or 5 months.

[vtvette]

I'm not a real estate investor but I do spend considerable time researching other types of securities. If I had to figure if the market was up or down I would try this:

Fundamental analysis maintains that markets may misprice in the short run but that the "correct" price will eventually be reached. The key is to recognize when an investment or security is indeed over or under priced in the long term. What if we use the median income and value of the average house as follows:

Historically houses have maintained values 2.5 to 3 times median income on average so, if the median household income is around $55,000/year in Las Vegas (a quick search revealed this number which sounds to be accurate - please correct if I am wrong) than the correct market value of the average house in Las Vegas is $137,000 to $165,000?

So, the median house in Vegas should be around $150,000. Of course medians are easily skewed by a few disproportionately high figures on the top end but, this should give a good indication.

Now, if one knows the average sq ft for all houses in Las Vegas you could divide price by sq ft and figure out the long term median price per sq ft for a house in Las Vegas. From there, multiply the price per square foot times the sq ft of your house and you should then have a fundamental value for your house as compared to all other houses in Las Vegas?

I know price per sq ft varies greatly from area to area and neighborhood to neighborhood but this should provides a base line? This would also adjust for long term trends in particular areas as neighborhoods rise and fall in desirability over the years.

Please note this is just a novice idea of how to get a baseline for housing values in Las Vegas.

Please share constructive criticism and ideas.

[tony soprano]

Originally Posted by vtvette

Please share constructive criticism and ideas.

If you approached it from a securities perspective I personally would lean towards a P/E model for valuation. Of course, in the case of real estate that would be a price/rent ratio.

[observer53]

Many off topic posts and responses deleted.

If you want to discuss the housing market generally/nationally, take the discussion to the appropriate General forum, please.

[brucerby]

Originally Posted by vtvette

.....Historically houses have maintained values 2.5 to 3 times median income on average so, if the median household income is around $55,000/year in Las Vegas (a quick search revealed this number which sounds to be accurate - please correct if I am wrong) than the correct market value of the average house in Las Vegas is $137,000 to $165,000? ....

So, the median house in Vegas should be around $150,000.

Makes sense, so what is the current median house price in Las Vegas?

[vtvette]

Originally Posted by brucerby

Makes sense, so what is the current median house price in Las Vegas?

A quick Google search revealed that the median value of a house in Las Vegas is $125,000. The 25th percentile is $80,000 and the 75th percentile is $195,000

Furthermore, the median in 2006 was a whopping $350,000. It decreased slowly to around $280,000 in Jan 2008, then dropped more dramatically to about $180,000 a year later in 2009.

It traveled right along our calculated median value of 3 times earnings for Las Vegas at $150,000 from mid-2009 until about 2nd quarter 2010 then made a slow drop to $125,000 around 3rd quarter 2010. It's been flat line at $125,000 since third quarter 2010.

Interestingly, the 25th percentile followed the path of the median almost throughout the entire bust. The 75th percentile was considerably over-valued as compared to the median during the peak in 2006. It followed the median throughout the worse of the bust but has been outpacing the median in recent months.

Source: http://www.deptofnumbers.com/asking-...ada/las-vegas/

[007 license to sell]

If your a potential buyer you need to know there can be some new issues with some of the homes in and around the Las Vegas Valley.

Some builders during the building boom used defective plumbing fixtures in over Thousands of homes from 1995 to 2005. This is a new defect that has been brought to light, there is an estimated 100,000 homes with this issue. This is a case of buyer beware.

Click on link below:

Faulty fixtures may be to blame for more home problems Updated: 6/29/2012 6:17:00 PM