Recovery predicted for Las Vegas housing prices ... maybe by 2031

[Newsjock]

Source: Vegas Inc

Las Vegas homeowners will have to wait until 2020 to get back half the value of their home lost during the housing collapse and more than 20 years before getting it all back, according to a Pennsylvania research firm.

... By its measurement, Moody’s said the existing home prices in Las Vegas won’t bottom out until 2012 at $122,900, down from $317,100 in 2006, a decline of 61 percent.

Moody’s, which in 2007 projected a major correction in the Las Vegas housing market, projects a 6.4 percent increase in price 2013 to $130,800. In 2014, the price will increase to $147,300 or 12.6 percent. By 2015, the price will reach $165,200 or 12 percent.

That’s a 34 percent increase between 2012 and 2015, but White said the increases slow after that.

Read more: http://www.vegasinc.com/news/2011/jun/22/more-20-years-home-prices-reach-pre-bust-levels-mo/

[joeybee12]

1. I thinks 2013 is too soon for any increase...

the market here is overstocked for years.

[Bryan Buchan]

2. Absolutely Disgusting!

Nothing angers me more than this real estate market, and no one doing anything about it. People should be able to re-write their notes at present value with this significant of a loss.

[pnwmom]

4. Why would banks want to offer mortgages under those circumstances?

When people would be asking the mortgage holders to take most of the risk?

[kirby]

5. People didn't complain on the way up?

When prices went up 100-200% percent, people were loving it.
Now that they have lost 30-60%, boo hoo.

Everyone cheering for things to get back to the where they were miss the point--getting back to where they were means we are back in a bubble.

I understand what you mean about resetting the loans, but that ship sailed long ago when TARP bailed out the banks and not the homeowners.

[B-Stupid]

3. I believe it, Vegas was arguably the hotbed of the bubble

Doug French (of the Ludwig von Mises Institute) wrote an excellent piece about the housing meltdown entitled "Walk Away." A very good read......

[SoCalDem]

6. not just Vegas..

My friend just bought a FIVE bedroom, gorgeous house with a 3 car garage, ...the works. It's in a golf course community and was only lived in by the "original buyers" for a few months. It has top of the line appliances and a kitchen pantry I would almost kill for :evilgrin:.. price $195K.. Beaumont CA.. They bid on 4 houses & were startled when the realtor called & said the five bedroom was theirs.. for the price they offered..no bargaining..just sold!..(they paid cash though, & that's the difference)

They saw the downturn coming & sold their home in Riverside BEFORE prices went to shit, and then banked their profit & rented until they found exactly what they wanted for their "last home"..

The only complain was that they raised 5 kids in a cramped 3 bedroom house which they paid off, and now that the kids are all grown & moved, they finally have a big house..But then they also have 9 grandkids :)

[Suich]

7. Your friends are very, very smart!

Good for them!

:woohoo: :woohoo: :woohoo:

[ProgressiveProfessor]

8. I have had investors wanting to buy me out. Stories like your friends make it tempting

[customerserviceguy]

9. That's why so many are walking away from their homes and mortgages

You only have lousy credit for seven years, not too long when you compare a three-times-longer period to pay off that negative equity situation you find yourself in. In eight years, you can easily get back on the real estate bandwagon, only with less money coming out of your pocket.

This bubble is only surpassed by the infamous Dutch tulip bubble as far as history is concerned.