Big Come Back for Las Vegas as Real Estate Prices Steadily Rise

Las Vegas used to always make the headlines for being the “Foreclosure Capital” of the country for several years. But now it is slowly making a comeback. Last year, there were about 12,000 short sales listed on MLS. Today, as of November 15, 2012, there are only 375 listed MLS for sale.

There are two groups of real estate in Las Vegas; under Group A are short sales, new construction, and some foreclosed properties at current market value. Under this group, the properties are selling like hot pancakes, they move very quickly; Group B is composed of properties that are still yet to recover from the real estate collapse from a few years ago. These are the properties that are difficult to sell and are not being sold because the sales price is almost double what they’re worth in the current market. Homeowners are still trying to hold on to these houses with the hope that the market will recover soon enough for them to have a good return on their investments. However experts don’t see this coming anytime soon despite the rise in real estate prices in Las Vegas.
The booming prices back in the early 2000s up to 2007 went way above and beyond the 3-4% annual growth but after that prices suddenly steadily fell. Presently the prices are gaining steady footing. And they are right where they should be. New construction is now being added to the Las Vegas housing market, which is something unheard of for the last several years due to the high rate of foreclosures. Houses back then where being foreclosed and sold for less than their replacement value.

Now that prices have risen back, new homes are being constructed because the new rates make it more possible for developers to compete with the prices of foreclosed homes in the market. But despite the real estate situation in Las Vegas, it still continues to be an ideal investment destination for investors and entrepreneurs.

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