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November 26, 2009

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Report: Home prices down 32 percent

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Steve Marcus / April 2008 file photo

Homes in Las Vegas have lost nearly a third of their value in the past year, according to a new report. Homes have lost about 40 percent of their value in the valley since prices peaked in the summer of 2006.

By Tim Richardson (contact)

Tuesday, Dec. 30, 2008 | 9:22 a.m.

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Beyond the Sun

A closely watched index released today shows home prices in Las Vegas dropped at an annual rate of nearly 32 percent in October.

The Standard & Poor's/Case-Shiller 20-city housing index showed only Phoenix had a higher rate of decline in the 12 months ending in October, at 33 percent. The only other city joining Las Vegas and Phoenix with a fall of at least 30 percent was San Francisco, where home prices tumbled 31 percent, according to the index.

Nationwide, the index fell by a record 18 percent from October 2007, the largest drop since its inception in 2000. The 10-city index tumbled 19.1 percent, its biggest decline in its 21-year history.

Both indices have recorded year-over-year declines for 22 straight months. Prices nationwide are at levels not seen since March 2004.

Numbers released last week by SalesTraq indicate home prices in Las Vegas are at August 2003 levels. According to the Standard & Poor's/Case-Shiller housing index, home prices in Las Vegas peaked in August 2006 and have since fallen nearly 40 percent.

None of the 20 cities in the Case-Shiller index saw annual price gains in October -- for the seventh consecutive month.

The Associated Press contributed to this report.

Discussion: 7 comments so far…

  1. By KDR81
    12/30/08 at 11:33 a.m.
    Suggest removal

    With so many small homes with 1 car garages built on tiny lots, home prices will probably fall below 2003 levels.

  2. By joncmac
    12/30/08 at 2:25 p.m.

    Comment removed by staff.

  3. By brianinnv
    12/30/08 at 10:17 p.m.
    Suggest removal

    You would think they would advertise this more! I mean, it doesn't make any sense to me that houses are cheaper then ever, but no one's taking advantage of that.

  4. By Babyboomer
    12/31/08 at 1:21 p.m.
    Suggest removal

    I've been following these for some time. I believe the prices have dropped way more than 30%.Why is no one taking advantage? Hey...people have to come up with and "qualiify" once again for a mortgage.This is something NEW to Las Vegas.Hope they learned their lesson from these
    bad times.This is one road they don't want to go down again.

  5. By dbltrbl
    1/1/09 at 12:46 a.m.
    Suggest removal

    Some of the foreclosures I've looked at have had real damage done, either by vacating owners or vandals. The cost of rehab (some are "buy-as-is") makes an otherwise attractive purchase prohibitive for someone who is not a contractor and who would be looking at many thousands of dollars added to their cost of making the structure livable again.

    It's so sad to see neighborhoods with so many vacated homes sinking into disrepair. The homes next to, or nearby, with owners obviously with "pride of ownership" must have those owners with a terrible sense of angst as to the future of their own investment.

    There was so much "bad paper" written just to get the fees that were paid. The money that was made; from the original mortgage, to the bank selling it off in a package, to the buyer packaging it into a security sold as a guaranteed product, made billions and billions along the line. What they bought was a mirage. Overvalued and under-collateralized.

    The American dream of home ownership was aborted by the greed of the people in the steps leading to these foreclosures. There was no verification of the buyers income and ability to repay. Creative financing, some never written before, with balloons and mandates in the fine print, were written and signed by people with no understanding of the time-bombs in that documentation they were signing.

    When Las Vegas recovers from the fraud and greed of overbuilding a renaissance will renew our valley.

  6. By Wolfdog
    1/1/09 at 8:23 a.m.
    Suggest removal

    With home prices falling, many people are now upside down on their loans. They will never in their lifetime on the home that they are in. They are in effect just care takers for the banks.

  7. By brianinnv
    1/2/09 at 4:29 p.m.
    Suggest removal

    Aren't we all... none of us really own anything.

    I suppose there's the issue of banks who recieved billions but haven't opened credit. There's the issue of the people who can't qualify. And the issue of those who do, don't have the money to put down. And really, new home buyers, if there human, won't be buying right now.

    But I wonder... when exactly is it the bottom; when is the point I'll look back five years later and tell myself "I should have bought", and "I should have tried"? I know, like always, I won't... and I'll watch people make millions from the millions current banks/developers/home owners are loosing right now. Fate favors the prepared... so I wonder, whose prepared? Anyone?

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