Why Prices Will Keep Rising in Las Vegas
I believe they will for a few reasons. One, all the people who have been sitting on the fence waiting for the bottom have realized it has passed and are now trying to buy before prices go up further. Two, many sellers who have been sitting on their homes to sell but couldn’t because of negative equity, are now putting their homes on the market, and because of low supply and high demand, they are pricing above recent sold comps and getting their asking price , creating an upward trend in the comps, which translate to higher market values. On top of that, new home builders are pushing prices up with new homes, which will also translate into higher market values. Coupled with interest rates under 4% and an improving economy and stock market, I suspect we will see growth for most of this year, until demand cools, because of supply and demand equilibrium. Although I do not suspect prices will drop down significantly then, only that price increases will subside. I see all of this as a natural correction to the worst housing collapse in history, and it is still a good time to buy in the Las Vegas area.