Residential Real Estate – A Spring Fling?

The national residential real estate market has been on a multi-year tear and Las Vegas real estate has lead the way. Everyone from housing experts to economists to home owners have been holding their breath this year as the national media has trumpeted the notion of a real estate “bubble” due to burst any day. In a revised forecast, the National Association of Realtors now says it expects sales of existing single-family homes to fall 2.4% to 6.62 million for the full year, which still would be the second-highest level on record (hardly a bursting bubble). That is better than the 5% slide the Realtors group predicted at the start of the year. One of the main reasons? Interest rates, pure and simple. Many were fearing rates approaching 7% as the year rolled on, but after making a brief move just above 6% recently, rates have fallen below 6% again. In Las Vegas, economic conditions really couldn’t get much better and prices for Las Vegas homes are rising modestly after stellar gains in 2004. No bubble bursting out here in the desert….that’s for sure.

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