LV homes relatively affordable, data find - Business

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Oct. 05, 2007
Copyright © Las Vegas Review-Journal

LV homes relatively affordable, data find

California has eight of 10 priciest sites in U.S.

By HUBBLE SMITH
REVIEW-JOURNAL

Housing in Las Vegas
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Las Vegas ranks as one of the nation's more affordable housing markets in the 2007 Home Price Comparison Index by Coldwell Banker.

The average price for a four-bedroom, 2,200-square-foot home in Las Vegas is $362,188, on par with similar homes in West Hartford, Conn. ($365,000), and Provo, Utah ($363,975).

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Las Vegas is much closer to Killeen, Texas, the most affordable U.S. housing market at $136,725, than Beverly Hills, Calif., the most expensive market at $2.1 million.

Eight of the 10 most expensive markets are in California. Six of the most affordable markets are near U.S. military bases.

It comes down to the old real estate adage, "Location, location, location," Coldwell Banker Premier Realty President Bob Hamrick said. People continue to move to Las Vegas for the lifestyle, new jobs and promotions and to raise a family, he said.

"The real estate market in Las Vegas is different than a year ago," Hamrick said. "Our market has experienced a slowdown in sales and an increase in inventory."

Nevertheless, buyer opportunities abound, he said. Those opportunities will begin to disappear as home builders reduce their inventories.

Home Builders Research reported 766 new home permits in August, the second straight month below 1,000. The permit count is down 38.1 percent for the year at nearly 11,000.

"It's going to get more affordable," Debi Averett of Phoenix-based Housingdoom.com said.

In a recent national news report, Ed Leamer, an economist at the Anderson School of Management at the University of California, Los Angeles, said home prices in California, Nevada and Arizona are going to fall 20 percent. He's been predicting the bursting of the "housing bubble" for at least the past five years. His early predictions called for a 30 percent drop in West Coast home prices.

Through August, existing home median prices in Las Vegas have fallen 5 percent to $275,000 following double-digit gains during the years Leamer said they were going to plummet. New home prices are up 4 percent to $338,560, according to Home Builders Research.

Leamer's predictions go as far back as 2000 and until recently, he's been way off base, Las Vegas economist Thomas Climo of Dr. Climo Consulting said.

"In fact, considering how he missed the huge bubble of 2004, even his accuracy concerning current events, when his predictions are compiled and consolidated, would show a significant negative decline not in conformity with the evidence," Climo said.

Coldwell Banker's Home Price Comparison Index looked at 394 metropolitan markets across the United States, Canada and Puerto Rico.

Although the index focuses on a "snapshot" look at subject homes and is not intended to show overall market conditions, a comparison of the 2007 and 2006 surveys shows that 148 markets saw a rise in value and 139 saw a dip.

Cities that rank nearest the index's national average of $422,343 include Modesto, Calif. ($421,667); Minneapolis, Minn. ($415,767); and Frederick, Md. ($415,000).

Local real estate consultant John Restrepo said home prices are only half the story on affordability.

"The other half is income," he said. "When you look at price vs. income, we're not an affordable community. I think we're less affordable than we used to be with the ramp-up of prices in '04 and '05."

A report from housing analyst John Burns shows the proportion of housing cost-to-income in Las Vegas at 50 percent, compared with 99 percent in Los Angeles (Beverly Hills) and 24 percent in Killeen, Texas.

By the numbers

Rank	Most expensive	Average price	Most affordable	Average price

1.	Beverly Hills, Calif.	$2.21 million	Killeen, Texas	$136,725
2.	Greenwich, Conn.	$2.02 million	Minot, N.D.	$139,033
3.	La Jolla, Calif.	$1.8 million	Arlington, Texas	$139,175
4.	Santa Monica, Calif.	$1.79 million	Canton, Ohio	$146,333
5.	Newport Beach, Calif.	$1.62 million	Muncie, Ind.	$150,000
6.	Santa Barbara, Calif.	$1.6 million	Topeka, Kan.	$150,075
7.	Palo Alto, Calif.	$1.53 million	Fort Worth, Texas	$151,250
8.	San Mateo, Calif.	$1.5 million	Tulsa, Okla.	$153,750
9.	San Francisco	$1.45 million	Grayling, Mich.	$155,000
10.	Boston	$1.38 million	Wichita, Kan.	$156,500

SOURCE: Coldwell Banker

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Please enter your name Name: Please enter your email Email: Please enter a comment COMMENTS : (word count limit is 300) You have reached the maximum number of words allowed Current Word Count: Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background. The Popper wrote on October 13, 2007 07:54 PM: This article is a joke, right? Or a paid avertisement? I mean, asking Coldwell Banker if Las Vegas real estate is a good investment is like asking a drug dealer if smoking crack (like the author) is good for your health. And regarding raising kids - Las Vegas is as good for raising kids as Greenland is for growing oranges. It'sallRelative wrote on October 08, 2007 11:12 AM: Sounds like "Crazy" never took reading and comprehension. The quote from the realtor says, people continue to come here to raise a family--this is true since there are people with families who live here. The quote did not state that Las Vegas is a great place to raise a family. Nevertheless, this would be a subjective statement: true for me, not true for you. And, just so you know, with great parents Las Vegas is a great place to raise a family. In reality, any city would be a great place to raise kids-- with appropriate parenting. It's not the city that raises your kids, it's the PARENTS. DHS wrote on October 06, 2007 10:13 PM: getreal, 2200 square foot homes are not rare, as you imply. I grew up in a 3500 sq foot home in MO, and currently live in a 2200 sq foot home in Louisiana...can't imagine anything smaller. My brother has a 5300 sq foot home. We are planning to relocate to LV in the next year or so (I work for a Vegas-based company), and expect to buy a home about the same size. Given the way the market in LV is, I won't be buying for the next two years....even if I have to rent. No sense in buying a $400,000 house now when I can get it for $275,000 next year..... getreal wrote on October 05, 2007 10:49 AM: David, it's affordable if you buy only what you can afford, like a 1500 ft house, instead of 2200 ft house in this article. Let's get real and live within our means. A 2200 ft house is a luxury one even in California. crazy wrote on October 05, 2007 09:00 AM: The people come here to raise a family??? What is this author smoking? Las Vegas is a great place for families, as much as Salt Lake City is for partying. David R Huntington wrote on October 05, 2007 08:16 AM: "The other half is income," he said. "When you look at price vs. income, we're not an affordable community. Only one sane opinion in this sea of propaganda. Housing in Las Vegas is NOT affordable. Who are they kidding? delray wrote on October 05, 2007 07:29 AM: buy now bankruptcy later. dont be a fool the bottom of this market is no where near. what a suprise a realtor is once again spinning a tale. Paul wrote on October 05, 2007 05:24 AM: "The average price for a four-bedroom, 2,200-square-foot home in Las Vegas is $362,188, on par with similar homes in West Hartford, Conn. ($365,000), and Provo, Utah ($363,975)." But the home in Las Vegas is on 1/10th of an acre, while the homes in Provo and Hartford are on 1 acre or more!