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Report shows continued decline in housing prices
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LAS VEGAS REVIEW-JOURNAL
October showed a continued decrease in housing prices, seasonal declines in inventory and growing weakness in the markets most impacted by the bubble bursting three years ago, Mountain View, Calif.-based Altos Research reported.
The Altos 10-City Composite declined 1.6 percent in October to $458,518 and is off by more than 3 percent for the last three months.
Home prices fell in 25 of the 26 markets covered in the report, most notably in San Diego (-3.28 percent), Salt Lake City (-3.27 percent) and Phoenix (-3.11 percent).
The report showed Las Vegas with a home price of $152,641 in October, a decrease of 1.55 percent from September. It's down 2.58 percent for the last three months.
"Vegas isn't declining too steeply because it already has," Altos Research spokesman Scott Sambucci said. "At this point, I'd say Vegas should take any stability in prices occurring in concert with rising inventory as a huge positive. If prices can hang on -- relatively speaking -- while inventory grows, that's a good thing because usually more supply at fixed demand leads to lower prices."
Las Vegas, San Diego and Phoenix were the only three cities to show an increase in inventory for October. Listings grew to 23,082 in Las Vegas, up from 22,749 in September and 22,400 in August.
Sambucci said the banks' foreclosure moratorium in 23 states will have some effect on pricing, but it's more of a "hiccup" than anything.
"Down the road, I suspect we'll look at housing trends and foreclosure trends, see a little jog in the trend line and say 'Oh yeah, that's when the banks had the foreclosure paperwork thing,' " he said.
"If you're a glass-half-full guy, you might say the worst of the price declines are behind us. Based on what we're seeing, I'd say Vegas is reaching the bottom, but it's going to be there for an extended period of time. Major economic problems there -- population rates slowing, oversupply -- it's going to be a while," Sambucci said.
The Altos 10-City Composite is based on single-family homes in Boston; Chicago; New York: Los Angeles; San Diego; San Francisco; Miami; Las Vegas; Washington, D.C.; and Denver.
Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.
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If Las Vegas is indeed the Dumbest City, husky, it has nothing to with Harry Reid. A lunatic got 45% of the vote in that election. Senators have a habit of moving back to D.C. where the Senate is, you know. Nevada is predominated by ONE industry, tourism, with all its Sin City ramifications. The lack of foresight to expand the state economy and the tax base, both urgent necessities, is to be laid at the doorstep of Carson City. Lousy leadership up there.
"Dumbest City", Nevada just elected a Senator that hasn't lived here for 23 years. Nevada has two industries, banking and gaming, both run from Wall Street and DC.
Le the market fall and decide.
Intervention will shut down this market.
Arturo Devesa
ODJ and Jack.Webb are strangely missing from this thread. They must be busy googling obscure facts to support Reid. Or maybe they're out riding in the high speed train. Or perhaps working at Cuty Center this morning.
"Dumbest City", we proved that Nov 2... On the other hand there are tons of opportunities in small business, housing, land and for those that have cash, a custom built retirement home... Great weather! For all you other schmucks that love to complain, MOVE! Seattle 55' rain, Casper 33' snow, Minneapolis 34' snow, Chicago 55"' rain for the next nine months, you'll love it.
Any way you look at this, it's not going to bode well for home owners here in Las Vegas for years to come. Just wait until the next round of ARM's gets ready to reset in 2011, and 2012. Then let's see what the prices for houses is going to be.
@Long Time Las Vegan-- You missed, the "Dumbest City".
I guess zero taxes are no panacea...
I look forward to returning for cheap home office rentals on the Strip. I miss my gourmet kitchen at Desert Club.
It pays to shop around for a mortgage refinance. Mortgage rates have gone down like anything. My brother in law just got a 30-year fixed loan at 3.76% He told me search online for "123 Mortgage Refinance" for the lowest rate.
Hey Long Time Vegan..you missed most stressed out city and ground zero for mortgage fraud... and whiteberry, no i am not surpised by this at all... and Ifind it hard to believe our fearless leaders couldnt have seen it coming also...
So you can't make full payments on your 300k house. But you offer to pay 900/mo (35% of your monthly income) and the bank says "NO"
They foreclose, paint, plant, market etc. and sell it for $145k - todays value.
The bank losses $155k and the new owner pays less than $800/mo on a new mortgage.
Why didn't the banks and the Feds negotiate with the original owners?
ANSWER: Our Federal Government gave these banks BILLIONS of our tax dollars to do it that way.
That's why.