Homes at half price from 2006 peak

Published Tuesday, March 10, 2009 | 8:45 a.m.

Updated Tuesday, March 10, 2009 | 9:10 a.m.

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Las Vegas home sales edged up slightly in February, but nothing seems to stop falling housing prices, which have now fallen 50 percent from their peak.

The Greater Las Vegas Association of Realtors reported today that the median home price fell 2.7 percent in February to $155,603. That’s down from $160,000 in January.

Bank-owned properties account for at least three out of every four sales and those foreclosures continue to force home prices to fall, said GLVAR President Sue Naumann.

The $155,603 price paid in February marks a 50.6 percent decline from the peak of the market in June 2006 when the median price was $315,000, according to the GLVAR. The organization tracks only those single-family homes sales on the Multiple Listing Service.

There were 2,268 home sales in February, a 2.9 percent increase over January.

Discussion: 14 comments so far…

By MrVincent

3/10/09 at 12:10 p.m.

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I look at the MLS every day and my opinion is that most homes are still way overpriced given the issues that are facing the economy.

I noticed so many sellers that have homes on the market for quite a while and just follwed the market down with price cuts.

If you want to sell your home you will need to understand the concept of "drama pricing".

Not listening to the bafoons from the NAR would not hurt either.
By stevem

3/10/09 at 12:43 p.m.

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the volume of sales is only one part of it. i mean, that's a good sign, but PRICES have to start going up. that's going to be what it takes to get housing moving again.

people want to feel that we have "hit bottom".

what i'm worried about is that all the people that got foreclosed on won't be able to get a loan for 5 - 6 years and that's A LOT of people that aren't going to be able to get housing going again.
By denro

3/10/09 at 12:59 p.m.

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Steve, I agree and think this is a very real issue. I have had perfect credit for forty years, and because of one investment/construction property situation that is way upside down and has been foreclosed I am ostensibly barred from participating in any real estate purchases for some time moving forward.

Multiply me times maybe hundreds of thousands like me and that is a lot of people "out" of the market.

It's too bad, because otherwise I am ready, willing and able to buy something. No funds, no deal.

If a lot of folks like me got in the market that creates income for quite a few people, appraisers, title reps, loan officers, escrow etc.

I think the current administration or Congress should look at this.
By boftx

3/10/09 at 2:37 p.m.

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I hope home prices continue to fall. They were badly over-inflated for years. Anyone who bought back then was either stupid or greedy and both deserve whatever loss they take. If you are making the same money now as you did 3 years ago then you can still afford your home payment. Suck up your loss. I hope prices take 30 years or more to climb back. The housing bubble was a major component of this economic mess.
By not_a_snob

3/10/09 at 3 p.m.

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Well, boftx, that's a rather nasty attitude to have. I don't know where you get off saying people who bought homes that were over inflated in price are greedy...if anything it's the people who sold them. But that was the market. Or perhaps it's as you further suggest... we're "stupid." I think your statement about hoping it takes 30 years for home prices to recover is about the stupidest thing I've ever read. How ignorant can you be? Unless you are planning to kick the bucket tomorrow, the sooner the market improves the better it is for everyone... including you.
By boftx

3/10/09 at 3:23 p.m.

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The home market does nothing to improve the economy, it just raises the cost of living. Building new homes will employ people, I grant you that. But having the prices continue to spiral upwards un-checked just makes it harder on everyone except speculators.

The real key to the economy are jobs in manufacturing and farming, which happens to be the areas where we import more than we export. As long as that is true then this country is going broke and having higher housing costs will do it that much faster.
By not_a_snob

3/10/09 at 3:51 p.m.

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When huge manufacturing companies started shipping jobs overseas to cut their costs is when they cut off their nose to spite their face. Greedy CEO's continue to rake in the big bucks while people like you and I face losing our jobs, our homes. Wall Street took our pension money and ran. Now we're stuck bailing them out but "some people" don't think it's right to help the little guy. Oh, and please don't get me started on farming. It astounds me that government pay farmers NOT to farm.

People buying the over-priced houses didn't cause the housing bubble - greedy mortgage companies and banks (along with realtors who made a bundle) did that all on their own. Luring in potential homebuyers who they knew shouldn't have been given a mortgage in the first place.

BOFTX, I could go on and on but it's clear that you and I are not on the same wave length. I truly hope that your future is secure; your home, your job, your retirement. Best of luck to ALL of us.
By boftx

3/10/09 at 4:09 p.m.

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Actually, you and I are indeed on the same wavelength, but we differ on solutions.

I fully agree with your description of some business practices as "greedy", if you agree that people who agreed to accept those terms were "stupid" we can have a good discussion on how to solve this mess. :)
By not_a_snob

3/10/09 at 4:22 p.m.

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I don't know that I would refer to them as stupid. Perhaps misinformed and they definitely used poor judgment. I don't fully blame the purchasers. The ones who handed them a phony golden ticket should be ashamed.

Everybody has an opinion on the subject. I only hope that people give this new administration's plan time to work (if it's going to). This problem wasn't created in a year or even two - so getting it back on track is going to take some time :)
By stevem

3/10/09 at 6:03 p.m.

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boftx is in the same bucket as the people that say "i KNEW the market was at its peak" or "i KNEW the market was going to crash".

sure, right.

if you are so smart, why aren't you rich?

if someone bought a house in 2005 at market value, thinking they were going to stay in it for 7 or 8 years, and they lose their jobs, and now that house is going for half of what they bought it for and they can't sell it, and it gets foreclosed...that doesn't really make them greedy.
By getalife

3/10/09 at 8:21 p.m.

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People need to relax. If you purchased your home thinking it was bank, yes, you are screwed. On the other hand you bought you home for a LONG term investmest and a HOME you are fine.

The people most hurt are the recent purchasers or those wanting, needing to sell.

I purchased my home 8 years ago and have no thoughts of selling, so I really am not that concerned.
By azsk8fan

3/11/09 at 2:45 p.m.

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not-a-snob, let's not forget the appraisers too - the ones who came up with the over-inflated values reported back to banks so people could get a 400,000 loan on a house that was REALLY worth much much less - yep, add the appraisers in there with the realtors, mortgage companies and banks.
By azsk8fan

3/11/09 at 2:51 p.m.

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Even long term I think it depends on how much a loss is taken - a friend of mine bought a house for 440,00 and put 200,000 down - so she basically owes 240,000. 3 doors down from her the exact same house, complete with pool, just sold on foreclosure for 250,000. So I guess the 'good news' (if there IS such a thing) is that my friend probably isn't upside down on her loan - she basically owes what the house is currently selling for - otoh, how many years will it take for her to recover the 200,000 she put down - I seriously believe she will NEVER recover that so depending on how one wants to look at it she is either lucky to owe the current value or she's unlucky to have just lost 200,000 most of which she will probably never recover.
By Babyboomer

3/11/09 at 4:57 p.m.

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Hey boftx... where does this bitter taste come from? you get suckered into a scam ? You loss you shirt ? Lost your equity in your home? You got a big bone to pick so it seems.