DOWNWARD TREND ON LAS VEGAS HOME
PRICES - REPORTS SHOW LOWER PRICES
THAN A YEAR AGO WITH A LOCAL BUYING
BOOM

Core-Logic of Santa Ana, California
which tracks home prices, said existing
home prices in the Las Vegas area in
November were down 10.8 percent from
November 2010.

The market in Nevada and nationally has
been affected by distressed home sales
involving foreclosures and short sales
in which lenders allow struggling home
owners to sell their properties for less
than what is owed.

"Distressed home and condo sales continue
to put downward pressure on prices and is
a factor that must be addressed in 2012
for a housing recovery to become a reality,"
said Mark Fleming, chief economist for
Core-Logic."

On the flip side, the troubles in the Las
Vegas housing market have generated a
buying boom. Those who can pay cash or
obtain mortgages are grabbing properties,
homes, condos and townhouses at deep discounts.

(Please read a previous blog on Condo
rentals and net profits.)

The median price of local condos and town
homes sold in December was $58,550. That
is up 0.9 percent from $58,000 the previous
month but down 5.6 percent from $69,000
a year earlier.

GLVAR (The Greater Las Vegas Realtors
Association) is hoping prices will firm
up this year and expects continued strong
sales.

"We may see some improvement in prices this
year as our inventory of homes and condos
on the market keeps going down and demand
stays high, " GLVAR President Kolleen Kelley
said in a statement."

"We are also seeing more short sales which
are preferable to foreclosures and sell for
higher prices than homes that have gone
through a foreclosure."