Summerlin And Anthem See Home Prices Up
Home prices up by as much as 30% in some areas, but will this last and is it sustainable? New home prices are up over 10% from last year as well. This is caused by a lack of homes for sale and high demand from investors, first time home buyers and move up buyers. Current interest rates are historically low close to 3%. Home builders are busy as ever and buying up all available land to build homes. Will this recovery last? This depends on the estimated 100,000 potential homeowner defaults on the horizon.
One thing I do know is the banks are working with more and more homeowners to short sale their home, which will prevent a lot of these homes from going into foreclosure, plus the banks are not dumping these foreclosed properties on the market cheap, or letting the short sales go cheap, they want market value or above market value, which will help buoy prices.
My opinion is when the market dropped, we over corrected so much, this is just a natural correction to that. Was it influenced by government invention ? Probably, but also we are selling a record number of homes , and supply and demand kicked in. I think this is a good thing for our overall economy and neighborhood stabilization. I suspect prices will level off some, but this is a sign we are starting to return to a healthy market with normal appreciation. Even though prices are up, Las Vegas area housing remains very attractive for a number of reasons, we are much cheaper than most of California , we have no state income tax, plus we average 300 days of sunshine a year, just to name a few.