Prices of Las Vegas Homes Hits Median for Affordable Homes in Nation
Forrest Barbee, a Las Vegas Realtor of Prudential Americana Group, sees a steady
stream of prospectors hoping to make it big by buying up cheap homes.
Now, a new study reveals new information
regarding the downward spiral that started the buying bonanza. According to
Coldwell Banker Real Estate’s 2009 Home Price Comparison Index, Las Vegas
placed directly in the middle of the nation for housing affordability, with an
average price of $213,120 for a 2,200 square foot property with four bedrooms,
2.5 baths, a family room, and a garage for two cars.
If you compare that to the average sales
price of $361,250 in 2006 and $359,500 in 2005, you will notice a significant
drop in sales prices. The average today approaches the 2003 average of
$204,975.
This is a great buying opportunity
according to Bob Hamrick, chief executive officer of Coldwell Banker Premier in
Las Vegas. Especially for people who are on the rise and making income.
Barbee said almost 42% of the deals he made
last month were cash transactions. The high cash volume comes partly from the
large number of investors, and also partly from the large proportion of
foreclosure properties that are in dire need of repairs that the banks won’t
lend on them.
Click
Here To Know More about Las Vegas Foreclosures.
Meanwhile, Grayling, Michigan, ranked as
the nation’s most affordable market, averaging $112,000. La Jolla on the other
hand, is the priciest community, averaging more than $2.1 million per property.
A third of the markets surveyed boasted an average price below $200,000, which
is the highest in the past five years. In the national level, the prices are
down 30% from their peak in mid-2006.
For
homeowners who want to move up, though, they can only buy a new property if
they manage to sell off their old one. And that’s where consumer frustrations
are in today’s market.
The statistics by Coldwell Banker compare
properties for buyers who already own their first property. The newest figures by
Coldwell Banker also show a definite drop in the affordability divide between
Reno homes and Las Vegas homes. This
is a clear indication that Reno’s real estate market has taken at least as bad
a beating as the Las Vegas Market.