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Stumble20-city index shows Las Vegas alone in home price decline
On the market: Homes are shown for sale in Sun City Anthem. Stabilization of the housing market is seen as a key to a local economic rebound.
Tuesday, Aug. 31, 2010 | 8:08 a.m.
Sun Coverage
Las Vegas-area home prices fell again in June as high unemployment and foreclosures continued to dampen the market.
Debt-rating agency Standard & Poor's today issued its monthly S&P/Case-Shiller Home Price Indices, and they once again show the Southern Nevada real estate market continues to lag the national market.
While prices in the 20 big cities included in the index rose an average of 1 percent from May to June, they fell 0.6 percent in Las Vegas.
That follows a local decline of 0.5 percent from April to May.
Of the 20 cities in the report, 17 showed increases, two were flat and Las Vegas alone saw a decrease from May to June.
Compared to June 2009, Las Vegas prices in June were down 5.2 percent vs. the 20-city average increase of 4.2 percent.
"Even with concerns about near-term developments, we recognize that the housing market is in better shape than this time last year. Further, California's cities have moved from some of the hardest hit to three of the four leading cities based on year-over-year gains. Among the other hard-hit cities, the news is also a bit encouraging – Las Vegas, however, remains among the weaker cities,'' David Blitzer, chairman of the Index Committee at Standard & Poor's, said in a statement.
"The worry starts when you remember that the Homebuyers' Tax Credit has expired, foreclosures are still at high levels and July data on home sales and starts were very, very weak. The inventory of unsold homes and months' supply data were particularly troubling. If this relative weakness in demand continues, it will likely filter through to home prices in coming months," he said.
The Greater Las Vegas Association of Realtors earlier this month reported the median single-family home price in Southern Nevada during July was $135,000, down 3.6 percent from $140,000 in June and down 2.7 percent from July 2009.
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Clinton and the Democrats may indeed have started it. But you had SIX CONSECUTIVE YEARS of Republican control in all three branches of government. Are you telling me that in all that time, not a single one of them was capable of saying "wow, what a bad idea. Let's stop this while we can!" I don't recall a single Republican even mentioning the matter until the collapse started.
Need to put the brakes on building new homes until the current inventory of empty homes are rented or sold.
Plus, with the lack of water around here, there is no room for expansion. We will be a dry ghost town by 2020.
ghp2006 More stupidity from a nit wit who knows nothing who actually about who caused these problems.
Thanks Bush for the out of control spending and tremendous debt you left Americans, all the while just weeks before the economy crashed you told America the economy was in great shape.
Thanks Bush and McCain (McCain never saw an industry he did not want to deregulate) for deregulating banking and Wall Street which led to the unregulated derivative's which in turn ruined the housing market.
In 2008 Bush was pushing the fed to make home buying affordable to those who other wise could not own homes. This was a favor to his pals in banking who got rich quick as the housing market failed fast. Just to think he wanted to let Wall Street have Social Security.
Harry Reid had absolutely no control over any of these policies. Think before you post if at all posible.
The problem with the Las Vegas housing market is that people are to pessimistic. There is a reason the market is still down and it has nothing to do with the economy or a government official. People have lost faith in the value of their homes and once people regain that trust in the value of their homes everything else will fall into place.
Teaser You have some vaild points but in reality it was Reagan and Bush who pushed for the end of savings and loans as America knew them then.
For the real story google Neil Bush and the Silverado Banking debacle in Denver Colorado, which will tell you about the biggest robbery in history and how the Bush's got away with it. Old man Prescott Bush was invested in Union Banking who made a fortune off of Jewish prisoners slave labor by Germans before Congress made him devest himself from his holdings with his pal Hitler.
I think the Phoenix index was down too, though just by an insignificant amount: http://www.standardandpoors.com/indices/....
Blame whomever you want but it doesn't change the mess we're in. I've yet to hear any accurate prediction more than 3 weeks out. I remember Bernanke saying the economy was going to bottom out in 3rd qtr 2008. Wow, he sure nailed that one. Almost everyone is saying we haven't hit bottom just yet and more pain is coming. I hope they're wrong but I don't see enough encouraging news to come up with a different answer.
As I look for a house in Vegas, to move back after 14 years, I note that many out-of-state middle agers are buying. Some seem to be renting out their future retirement home.
I am a recnt transplant to the LV Valley. I believe I amy be the only one here with a positive attitude about the region. I came from an area that has never seen, and never will see, growth. You can all blame anyone you want, but the bottom line is many of the lost homes here were due to GREED. Instead of paying off mortgages many, not all, but many took the equity and SPENT IT. Now they want the mortgage holders to bail them out. I own my house outright as well as my home back east. Why? Because I paid for them. Could have taken equity and had a grand time, but knew this was not how to build a future. The other comment I would like to make, and believe me I have a lot of them, is the media needs to lay off the negative. Even with my comments above, I know there are a lot of people suffering, but those that are know it and do nto need to hear it over and over and over. The media has taken to highlighting the negative. This spills over to the people. Those that are in a bad situation feel even more helpless. There are positives to be drawn out of this market. Lower home prices means more people can buy. Lower rents means more people can move out on their own. Highlight some of this potential and it gets people thinking they can suceed too. For every home that sells to a live in occupant, money for furniture, etc goes into the market. Each time someone betters themselves you have a positive influence to others. I know this is not the answer to all, but please stop dwelling on the negative, all it does is spurs more negativity. Find something positive and talk to your friends about that. If you cannot find something positive to say, say nothing for now. Everyone knows the negatives already anyway. I'm sure this will cause some comments back. I'd like to hear your opinions.
Maybe if we stopped pouring all the taxpapers money into fighting a war over-seas that we know we can't win - we'd have money to fix our own backyards! We ALL got into this mess because of the banks - it's called credit cards, lines of credit etc etc. It's not hard to figure out people!!! 40 year mortgages? 6 years to finance a car? C'mon who are we all kidding? We live in a WANT society - see it, want it - put it on the credit card - worry about paying it off later! Everybody here likes to blame everybody else - look in the mirror - look at your credit card bills! Who's to blame now?
Just my 2 cents...
gbigs - It would be better for you to get your belongings and move on to greener pastures. I've talked to many who have your attitude, and you are entitled to it. But I have also talked to many that do not have this attitude. I don't know where all this is going to end up and neither do you. With a defeatist attitude, where this will end is clear, in defeat. I don't know the exact number, but I know over 30M people come here to leave money. The casino industry needs to change back to catering to the common man and bring back those that find a $ 30.00 buffet pricy. There are things that can be done, but highlighting negatives is not getting anyone anywhere.
There will be a new breed of people moving into Southern Nevada now. The older, retired set. They will have plenty of exciting things to do, good food, nice weather (no snow) etc. They can afford the low-priced homes. They won't have to pay income tax. The slow growth of Southern Nevada will help the water supply problem. Vegas was growing too fast a few years ago anyway. This correction is a blessing in disguise. It is a good thing.
Scotty-Boy, right on. People need to stop the blame and start living within their means. Life is good when you have what you need. Manage that first then you can SAVE to get what you want.
Obama's stimulus and bailout deficit spending has cost more than 8 years of the Iraq war. The amount spent each year averaged 3.2 percent of total government spending.
Oh man...Schoolhouse Rock card....AWESOME. Conjunction junction...what's your function.
If they didn't learn it then what makes you think they'll get it now?
Thanks cityplanners for doing such a great job.
Amazing to have a home go from $250k to 100k in less than 5 years.
TIME TO BUY! I'm glad banks refused my previous offers last year, time to go at it again.
For those whose knee jerk reactions absent of fact overcome reason and truth:
Your memory is selective. GWB warned about Fannie Mae/Freddie Mac and the sub-prime debacle to come numerous times. When he tried to push the congress to do something about it, the obstructionist Democrats led by Barney Frank, Chris Dodd and others guaranteed that all was well and accused Bush of class warfare against the poor and lower middle class for wanting to deny them the American dream.
A few references to help your memory: One from the most prominent Liberal paper, one from usgovinfo.com and one from an independent source.
http://www.youtube.com/watch?v=cMnSp4qEX...
------
http://www.marketwatch.com/story/bush-ad...
"A September 11, 2003 New York Times article shows that President Bush proposed "the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago." His proposal: An agency within the Treasury Department to supervise mortgage giants Fannie Mae and Freddie Mac."
------
http://www.bucksright.com/bush-proposed-...
"Fearing that mortgages would no longer be available to people who were unable to pay them back, Democrats eventually killed the proposal. The current meltdown in the mortgage industry is a direct result of giving mortgages to people who could not pay them back, a practice protected by Congressional Democrats."
------
http://usgovinfo.about.com/b/2008/10/12/...
"Starting in 2001, claims the White House in its fact sheet, "Six Years of Unheeded Warnings for GSE Reform," President Bush not only warned of the consequences of a Fannie and Freddie failure, he also offered plans to reduce the risk. It was Congress, claims the White House that thwarted presidential efforts to reform the GSEs until it was too late.
"Over the years, the President's repeated attempts to reform the supervision of these entities (Fannie Mae and Freddie Mac) were thwarted by the legislative maneuvering of those who emphatically denied there were problems with the GSEs," states the White House fact sheet."
------
Just a few of many, MANY easily available references.
Here's some actual CBO (Congressional Budget Office) figures:
"At the end of calendar year 2000, just before Bush took office, the debt stood at $5.629 trillion.
Fast-forward eight years -- that is, just before Bush handed the reins to Barack Obama -- and the federal debt stood at $9.986 trillion."
"For those keeping track, the debt estimate for the end of 2010 -- two years into Obama's term -- is $13.787 trillion. That's a 38 percent increase over two years. Looked at another way, the debt under Bush went up $4.357 trillion over eight years, while it has gone up under Obama by $3.801 trillion in two years."
While Bush was certainly a big spender, the economic collapse after 9/11 propelled the budget to new highs. CBO figures and charts show the deficit declining from 2005 -2008.
Obama makes Bush look like a piker. The voters elected to go from too much spending (much for the defense of the country) to outrageous and dangerous levels of spending to fund the Democrat 40 year old wish list of social justice spending, pay back unions and bribe voters.
Progressivism = nanny state socialism.
Moratorium on all new construction for two years, no jobs in construction anyway.
After two years then allow a minimum number of new homes per year in keeping with water availablity on a sustained basis. Existing home prices will rise, and give Clark County time to catch up with infrastructure needs.
Prices will stop dropping when wrecking balls cut loose on some of the rotting squalor.
Strange to see all these hard working, productive, happy people here in the Las Vegas Valley. Negative Nellies please leave. We are better off without you.
Great story but it doesn't tell it all...
http://www.latimes.com/business/la-fi-ho...
gbigs: Yes, China supports their own like America did years ago. But who needs them anyway, LOL.
We were just in London and their casinos are a joke. They are small and empty. The Londoner's admit they like coming to Vegas to experience the real thing. So maybe Vegas will start getting the European crowd now that BA flies direct to McCarren.
Vegas still has a lot to offer. It just needs to keep reinventing itself to adjust to the times. I like the idea of museums and the crocodile zoo.
There's a cool new website called beta.realtor.com where you can type in a city or a zipcode and see a lot of detail about real estate listed for sale.
I was playing with the website last night, running searches for high rise condos in Las Vegas.
Things have reached the point where you can get a very nice, new highrise condo, 2 bed room 2 bath, for $250,000 or less. There are tons and tons of nice new high rise condos at $300,000 or less.
It seems to me that the City, County and Board of Realtors should be promoting these condos for sale to affluent retirees, on a national basis. Properly promoted as "exciting" and "scenic" these condos would probably be sold within a few years.
LA went through a period in the early to mid 1980's where there was a massive surplus of high rise condos in Century City and Westwood. Ultimately, the supply was absorbed not by young hipsters but by affluent middle agers and senior citizens.
The point, from a real estate perspective, is to create demand for these condos and to unload them because their construction cost and inherent value creates a drag on all other stick built homes and condos for sale in Las Vegas.
@ ascudder
Crocodile zoo? Possibly a good idea, but I can tell you that we've had guests from all over the United States and Canada, and they are uniformly disappointed that Sigfried & Roy's while lions and tigers are not displayed in a decent-sized animal park, instead of their tiny space at the Mirage.
Forget putting warehouses at the Bali Hai. The County owns the land and with the beautiful tropical landscaping and the help of Sigfried & Roy they could probably create a First Class urban wild animal park on the Strip.
We have too many people in Las Vegas.The town cannot support the population.This means No Jobs No Homes.We overbuilt and thats the fact.
You did it to yourself no money down on a house I have to laugh at that.Like the old saying,If its to good to be true its a scam.
All that stimulus money went to big business to bail Them out. Banks and Wall Street are not going to help the little guy out they only help themselves.
We have BIG problems Wars,Boarders,Illegals,unemployed, jobs going overseas and list goes on. All this did not happen overnite,its at least 40 or more years in the making. All I have to say is we better get business people in Washington not politicians.
gbigs is one in a 100-year long line of people predicting the death of Las Vegas. Get in line, buddy; you are in the company of thousands of haters proven wrong.
Las Vegas may indeed shrink, but that would be a good thing. If we can get our population back in line with our visitation, we'll be fine. In the meantime, you should be one of those who packs your bags, gbigs, and hightails it out of town. See ya!
I get that there are many factors in play here, but it seems to me that your local leaders have some of the blame here. There lack of vision over the past twenty years of not diversifying the economy would seem to be a big reason that 20 cities are up and Vegas is down. Putting everything on one industry that depends on people spending disposable income is just plain shortsighted.
Good luck to you all, hope things turn around soon.
No JOb's can't move. We are done.
Who ran up the prices? BUYERS WILLING TO PAY THE PRICES.
Who Signed on loans they could not afford long term? BUYERS.
Who defaulted on the loans and lost the houses? BUYERS.
Who tanked the housing market? The BUYERS listed above.
Time to look at a bit of personal responsibility folks. The American public caused what is happening today and as the American Public always does they are looking to blame everyone else for their own problems.
Grow up. It has happened before in this country and it will happen again.
Those of us that acted responsible, bought houses years ago they could afford, paid them off and did not mortgage them to the hilt are sitting just fine.
Hopefully some of you will learn your lesson so you don't do this to OUR COUNTRY again anytime soon.
This started with the banks and their greed. It started with all of us doing with subprimes like the country did with stocks in the 1920's. When the 1937 laws were removed and the Graham bill passed, Wall Street did the same thing with subprimes as they did with stocks in the 20's and America almost suffered the depression fate. If it wasn't for the stimulus, we would be alot more homeless and suffering. It will get better soon. The market is out of the resession. Now all that is left is jobs. Nevada will be the last if not one of the last to recover. We and CA had most of the subprimes. The adjustables are not all in yet. And our economy is based on good growth only. Construction, mining(to build and gold buying)and casino(hospitality) and farming & ranching. Without a good economy, Vegas is low. We are also low because these jobs are not well educated tech jobs that can stablize a city through hard times. We need to diversify our Nevada and LV's economy and train for tech and tech support jobs like the wind plant Senator Reid got for NV. Or the companies will hire outside the state and we will loose.
I have to laugh when out of towners come to Las Vegas, licking their chops because they THINK our home prices are money to be made. Little do they realize that home prices reflect the poor employment figures of 15% unemployment and dwindling paychecks for many. How many can afford a $125,000 mortgage? There are many that feel it is good news for rentals but I cannot disagree enough.
kenodave: I totally agree with you
There are NO jobs in Vegas anymore that pay enough to afford a decent living.
Investors: You have gambled, and lost. Your investments as losing big time, and I for one couldn't be happier! Its because of you that the banks refuse to work with homeowners to save their houses.
Vegas No. 1 again for the wrong reason.
Got news for you! Vegas may not be a ghostown (yet), but it surely is a wasteland.
shylock
Good post and thank you for staying "on topic".
jldour
Another good post and the truth.
Also, I'd like to mention the "greased palms" of the Powers That Be so that building permits would be issued to build not only an abundance of not-needed homes, but strip malls (which when I was still there were 95% empty) just about everywhere during the years 2000-2006. Way too much was built and only an idiot could not see what was going on at the time because the majority of Las Vegas residents saw it all coming.
yeah, lets start knocking some down and cause a shortage.
but seriously, vegas was late to fully feel the recession and we'll be late to rebound, we live off the RESULTS of the rest of the country... we don't make our own
I cannot sell my house in Iowa fast enough to get out there and buy up the kind of home that would cost me twice as much here. I have been reading this paper for a while now and I have to admit I find the level of pessimism and negativity very disturbing. Is it really that hopeless in Nevada?
Why would anyone want to move to this wasteland?
Seriously,unless youre a ed hardy wearing,skyy vodka drinking trust fund baby,WHY?
There is no quality of life here,whatsoever.
even the little things will grind on you,when its 80 degrees out,people driving around with their windows up,I know this means nothing too most,but to me it is a Sublimminal message that just screams,if i dont know you,i dont need to know you
And to all of the above posters,I do get the negativity is getting old,BUT for me,I cant sell my house for what i financed,so im literally stuck here for another 7-10 years,,yoo hoo!
I had almost 30% down,and still am undervalued about 60-75,000 and im not destroying what credit i have by vacating,and letting them foreclose,Although I would like too
Nowhere in the country is the economic divide so great,there is no middle class in las vegas anymore,you either are a have not,or wealthy,and dont let any of the posers tell you different
las vegas 5-7 tears ago had 100,000 construction guys/gals living the middle class dream,That is gone forever(excuse the pun)
something as simple as a movie theatre to take your family to out in a suburb,is even missing,90% of them are in casinos,lake mead is a absolute laugh riot as a recreational venue when the water temp is 88,and the outside temp is 108,unless you like refreshing in a bathtub
the local,good looking woman that arent entertainers,and have any tact/class whatsoever work on the strip,and go home and hibernate until their next shift,and groceries
they certainly arent hanging out at PT's on friday and saturday nights
the community sports programs are a complete joke also,with the lack of support/funds,etc
if youre lifestyle is waking up at noon,and playing around until 10-11 pm,then heading down to the clubs for some extracurricular activities,and your money account never dwindles,then you will love it here
No,Im not jealous of those people,but that is not the way of life for most in this town,unless you are talking about 2.4 miles of strip action
the worst schools/education in the nation
illegals stealing american workers jobs,and i understand they are the 10-14 dollar jobs,BUT STILL they are being taken by illegals
IOWA is not exactly hopping with action,unless maybe youre located in west des moines,but its alot better than here if you value quality of life
traffic is verifiably horrendous,and if you do get in an accident,the other driver will drive off anyways,lol
welcome to the valley!
peace out
with shadow inventory continuing to grow the market may get even worse. much worse.
Rory REID who can never say no to a building permit is mostly responsible for the Vegas RE mess. We have laws to insure the RE values stick, Reid worked to destroy those protections. Every permit directly affects existing RE. Unless the whole benefits there should not be any new permits issued. Using lame excuses like sprawl it adds jobs is a ruse, it doesn't. Maybe for transient illegals it does, but not for residents.
Both Reid's have actively pushed this diversify Nevada's economy BS. Which defined means outsource our core industry, namely gaming. We have insanely high unemployment because of ridiculous development which crashed and the destruction of our core industries.
If we did not have the Reid's working both ends to destroy the State it would hardly be the meltdown we currently see.
FWIW:
There are new homes still being built on the north side of the valley.
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We are considering a move to Summerlin and would appreciate any honest feedback from anyone who lives or has lived there. The marketing gives you the sense that it is a tight knit community, is this just hype?
Summerlin is the real thing. It's a wonderful community that exceeds expectations. The parks, trails, schools etc. are the best in the city. And there is a great sense of community. I strongly recommend it to anyone buying a home in the Las Vegas valley. Good luck with your home search!