[von949]

Originally Posted by LinkFromSoCal

I don't doubt that home prices have increased in many cities, yet in some Vegas areas, they have increased over 30% in the past year. How many other cities have experienced a similar leap in median home prices? My family bought our Henderson home two years ago for $201,000. A year ago, we could have probably sold it for even money. Now, I have realtors telling me we may be able to get $300,000 for it. It's baffling to me, and I find it hard to believe that such a level of housing inflation could be common throughout the country, even in other places where housing prices tanked such as Detroit.

How many other cities experienced a more than 50% price cut in median home prices since 2006? Not saying that 2006 prices were the norm but what really is the norm for this city?

What was the price of your current family's home in 2006?

[Coco6163]

Trader Joe, why $80SF? Why not $75 or $85? In other words, what objective basis is there for $80 as the magical number? Don't get me wrong. I am not saying you are off the mark; I don't know. I just am wondering why the mark is set where you say.

[Trader Joe99]

Originally Posted by Coco6163

Trader Joe, why $80SF? Why not $75 or $85? In other words, what objective basis is there for $80 as the magical number? Don't get me wrong. I am not saying you are off the mark; I don't know. I just am wondering why the mark is set where you say.

$80 per sq should be the top to protect you from ending up heavily underwater one day when this frenzy is over. And in reality homes in Las Vegas are not worth more then $80.
You may be comfortable with $85 or $130.
I wouldn't pay more then $67 per sq for single family home or $40 for a condo in Las Vegas.

[observer53]

Originally Posted by Trader Joe99

$80 per sq should be the top to protect you from ending up heavily underwater one day when this frenzy is over. And in reality homes in Las Vegas are not worth more then $80.
You may be comfortable with $85 or $130.
I wouldn't pay more then $67 per sq for single family home or $40 for a condo in Las Vegas.

If you have such a negative impression of all homes in Las Vegas, why are you here? (assuming that you are)

[Willy702]

Originally Posted by Trader Joe99

$80 per sq should be the top to protect you from ending up heavily underwater one day when this frenzy is over. And in reality homes in Las Vegas are not worth more then $80.
You may be comfortable with $85 or $130.
I wouldn't pay more then $67 per sq for single family home or $40 for a condo in Las Vegas.

Well then I guess you may never buy another property in Vegas again. We'll never see $67 sf in non-trashed homes again IMO. Wages and replacement cost just make it next to impossible and I also doubt we'll see a financial panic for at least a few decades like what we saw in 08/09. So believe what you want about what proper value for homes are, but the marketplace isn't listening to you.

[Coco6163]

Originally Posted by Trader Joe99

$80 per sq should be the top to protect you from ending up heavily underwater one day when this frenzy is over. And in reality homes in Las Vegas are not worth more then $80.
You may be comfortable with $85 or $130.
I wouldn't pay more then $67 per sq for single family home or $40 for a condo in Las Vegas.

Seems like you are painting with a pretty broad brush stroke. I am guessing that construction costs for a 5,000+ SF home in The Ridges, for example, are a lot higher than a 1,500 SF home in an older part of Spring Valley. If construction costs alone are higher than $80 SF, your point seems much too low, and a good value could be missed on a home worth a lot more than that. Could values dip below construction costs? Of course they could. But are they likely to stay there over the long term? Not likely. I am no expert, and I enjoy learning from the experts here. But until there is some basis -- other than your own opinion about what housing is worth here in the Valley -- to substantiate those numbers you suggest, I am reluctant to follow your advice.

[gaash2]

Trader Joe you are missing the big picture. Low interest rates, high population growth, government incentives to buy a home (tax benefits, govt subsidized financing etc.) and a recent collapse. Prices are going higher, in most of the US, but in fast growing metropolitan areas like vegas even more. What is funny is people talk about houses going up 30% in 1 year, how about the rise in the stock market from 09, or gold from 2001, and all these other assets that I'm sure most housing bears absolutely love.

[lvoc]

Originally Posted by gaash2

Trader Joe you are missing the big picture. Low interest rates, high population growth, government incentives to buy a home (tax benefits, govt subsidized financing etc.) and a recent collapse. Prices are going higher, in most of the US, but in fast growing metropolitan areas like vegas even more. What is funny is people talk about houses going up 30% in 1 year, how about the rise in the stock market from 09, or gold from 2001, and all these other assets that I'm sure most housing bears absolutely love.

Actually Trader Joe is missing something but it much less complex than it is made out...

Tj is missing the fact that Las Vegas dived in the crash far more than makes any sense. That was the real manipulation.

I still have no idea why...but it sure did happen. If you overlay the various Case-Shiller charts it isk quite clear. Las Vegas crashed worse than any where else. And that was done virtually single handed by the banks.

The result is that Las Vegas can come up 30% in a year...and another 30% in the next year and still be below the long term trend line.

[Trader Joe99]

Originally Posted by observer53

If you have such a negative impression of all homes in Las Vegas, why are you here? (assuming that you are)

Observer53 I have no problems with Las Vegas homes, I have problems with inflated and manipulated Las Vegas housing prices.
Las Vegas housing demand is fulled by speculators and hedge funds who are purchasing homes today with other people money, borrowed with 0% Interest rates.
Housing market is NOT a stock market and shouldn't be considered that way.
American wages are not going up, but down and we are mostly just creating low paying new jobs.
Americans are hurt, americans are having hard time keeping up with high food prices, high gas prices, high utility prices. Last thing that Americans need now are inflated housing prices.

[Jalhop]

Originally Posted by LinkFromSoCal

How many other cities have experienced a similar leap in median home prices? My family bought our Henderson home two years ago for $201,000. A year ago, we could have probably sold it for even money. Now, I have realtors telling me we may be able to get $300,000 for it.

Few other cities, if any. The price increase is due mainly to assembly bill 284, which all but shut down the real estate market in NV. It won't be until next year that AB 300 starts clearing out the remaining foreclosures (thousands of them, assuming the governor signs the bill into law). In LV hedge funds will be waiting to snap everything up at a discount. In Reno, where I was looking, it might be possible to buy a house next year without enduring a bidding war.