Nationwide Home Values Within 12.5 Percent Of April 2007 Peak…Not Case for Las Vegas
By
National Home price Index
According the Federal Home Finance Agency’s Home Price Index, home values are now off just 12.5 percent from their April 2007 peak nationwide. This, after a half-percent monthly increase in prices in May, on average.
Given the state of the market since April 2007, the Home Price Index results are a positive for both the housing market and the economy, but we have to remember that May’s half-point increase is an average, and not specific to a particular area.
In contrast to “national markets”, the real estate markets in which you and I live are decidedly local. It’s a major difference and the distinction renders the Home Price Index somewhat less important.
After all, the HPI doesn’t account for housing activity in individual neighborhoods like The Vistas , nor does it track value across cities like Las Vegas and Henderson. Instead, it summarizes data in giant chunks of geography.
A quick look at the HPI regional data proves the point. Of the HPI’s 9 tracked regions, only one was within one-tenth of one percent of the national, half-point average. The others varied by as much 1.3 percent.
As a sample:
- Mountain Region : + 1.7 percent
- New England : + 0.2 percent
- South Atlantic : +1.0 percent
And this is on a regional basis. The HPI’s applicability to state, city and neighborhood markets is even less appropriate.
Las Vegas Real Estate values cannot be captured in a national survey. For Las Vegas home buyers and sellers, what matters is the economics of a block, on a street, in a neighborhood. That type of granularity can’t be tracked in a report like the Home Price Index.
The best place to get that data is from a local Las Vegas real estate agent that knows the market well.
As the following chart indicates, Las Vegas real estate has a long way to go to just get to the national 12.5% gap in the housing price index (comparing 2007 peak and today). This chart shows median prices of Las Vegas homes over time since July 2007 – the gap, by comparison, is closer to 40%. The Las Vegas real estate market will take longer to recover home values due to the staggering amount of distressed properties that still have to be be moved out of the inventory. Distressed properties include both Las Vegas short sales and Las Vegas foreclosures.
It’s an excellent time to be a Henderson or Las Vegas Home buyer.
Considering a Las Vegas Home purchase? Search all Las Vegas Homes for Sale using our free, interactive map-based search.
Call Kathryn direct at 702-348-7191 to schedule a Las Vegas home buying consultation today.
Related posts:
Not really that big of a percentage but thanks for the info. Nice Blog
I am still working on my blog. I envy you for reaching this far.