Valley home prices plummet toward ZIP

By Brian Wargo (contact), In Business reporter

Fri, May 15, 2009 (midnight)

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Ten Las Vegas ZIP codes reported drops of more than 60 percent in home sales prices from 2008’s first quarter through March, according to a research firm that tracks regional sales.

Thirteen of 56 ZIP codes in the Las Vegas Valley reported median sales prices below $100,000 in the first quarter. The drop in prices spurred 10,733 sales, a 30 percent increase from the first quarter of 2008 to 2009’s similar period.

Overall, the median price of homes sold in Southern Nevada, including Laughlin and Mesquite, fell 40 percent in the first quarter to $150,000 or $84 per square foot, according to San Diego-based DataQuick.

The firm reported that 89103 in Spring Valley, an area bounded by Spring Mountain Road to the north, Tropicana Avenue to the south, Rainbow Boulevard on the west and Interstate 15 on the east, reported an 83 percent decline to a median price of $88,000.

That ZIP code is in unincorporated Clark County, but Las Vegas and North Las Vegas reported some steep drops as well.

One of the lowest median prices of any ZIP code was $45,500 or $39 per square foot in 89101, which includes areas surrounding downtown Las Vegas. That’s a 75 percent drop from the first quarter of 2008. The drop sparked 112 sales between January and March, a 167 percent increase over 2008.

Prices fell 77 percent in 89102, an area southwest of downtown Las Vegas, to $98,000. Despite the price decline, sales in that area fell 52 percent.

The lowest median price of any ZIP code was in 89030, the area surrounding downtown North Las Vegas, at $39,000 or $34 per square foot. That’s a 78 percent drop from 2008, but it spurred the biggest increase in sales in the valley. The 195 sales in the first quarter was a 354 percent increase.

The 89135 and 89138 ZIP codes in Summerlin recorded the two highest median sales prices in the first quarter despite steep declines. The price in 89135 fell 22 percent to $270,083, and the price in 89138 fell 21 percent to $285,000.

The highest price per square foot for housing was paid in 89109 along the Strip at $320. The median sales price was $247,500, a 61 percent decline and a reflection of the condominium market. There were only 72 sales in the first quarter, a 23 percent decline from the first quarter of 2008.

In Henderson, ZIP code 89052, which includes Anthem, recorded the highest median price in the first quarter at $260,000, a 26 percent decline from 2008. There were 282 sales, a 12 percent decline, showing that lower-priced homes are generating the most sales.

The smallest price drop was in Boulder City, declining 1.1 percent to $235,000 from the first quarter of 2008 to 2009’s similar period. Sales were tepid with 32 closings, a 6.7 percent increase.

Discussion: 4 comments so far…

By vegasgurl4fun2

5/16/09 at 10:50 a.m.

Suggest removal

Thank the lenders for your new, low property values...
By gold1020

5/16/09 at 3:55 p.m.

Suggest removal

I didn't hear a single person complain about the lenders from 2002-2007 when proprty values were going up 35% per year. It was all smiles then. If you didn't complain then-don't complain now.
By Babyboomer

5/16/09 at 4:28 p.m.

Suggest removal

The question now is...will they be as quick to re-assess all properties to the new lower prices. Who's making up all these lost taxes?
By r243n

5/16/09 at 9:09 p.m.

Suggest removal

I'm an outsider to Vegas but visit about 1x or 2x per year to visit friends and family. That town was way over built. I think it would be wise to allow existing inventory to get absorbed. Prices 10-years ago were really affordable there. Now with the boom they got out of hand. I still feel based on the average service level wage in the region that prices will have to drop significantly lower for the typical family to afford a home.
Also the Vegas valley was the #1 target for Mortgage fraud in which un-ethical home appraisers and criminal rings artificially inflated property values to stick it to the banks with over inflated property on a mortgage that would eventually go bad. This level of criminal dealing over hyped the market there. It will need to drop significantly for the fundamentals to make sense once again. Also the lack of water resources in the Valley will impact home values I feel since it will be difficult for companies to re-locate to the area who require significant water resources. My long term bet is to Short the Vegas real estate market unless the water issues can be resolved. Lake Mead is running dry last time I went out there.

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