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Have Real Estate Price Decreases Been the Same in All Areas?

by Administrator on Nov 10, 2008 Property Appraisal 933 Views

The Las Vegas real estate market has seen dramatic price decreases during 2006, 2007 and 2008. The price decreases have not, however, been uniform across all neighborhoods or across all property types.

 

 

 

 


Residential home sales have been hit the hardest by the "recession of 2008."  The recession has given us 15 to 20 year high unemployment rates and record foreclosures. Greater Las Vegas Association of Realtors (GLVAR) statistics indicate that the average price of a single-family home sold in Las Vegas in October of 2006 was about $ 369,000 while the average sales price of a home in October of 2008 was about $ 226,000. That's almost a 61% price decrease in the average sales price of a home in Las Vegas in two years!

 

 

 


What the statistics don't tell you is that the price decreases vary considerably from one zip code area to the next. Statistics provided by Data Quick, Inc. via their DQnews.com Internet site (dqnews.com) indicate that the median price of homes decreased in most Las Vegas zip code areas between the second quarter of 2007 and the second quarter of 2008 between - 2.20% and - 67.5%. Notably there were even a few zip code areas that saw median home price increases over that period.

 

Data Quick's information also indicated that in May of 2008 the "median sales price (of homes) dropped to its lowest level in four years . . . as foreclosures continued to weigh heavily on the housing market." [1]

 

 

 


Per Data Quick, the median home price decreased in zip code area 89119, the zip code area that includes most of the Las Vegas Strip, by 57.3% while zip code area 89032, located in north central Las Vegas, saw the median home price decreases of only 1.3%. Price decreases have been due in part to past (failed) investor speculation, and some zip code areas may have had larger decreases than others due to the number of investment homes purchased within them.

 

 

 


The value of commercial and industrial properties have fared better, with regard to losing value, than single-family residential homes due to their being fewer forced sales in the commercial market. While vacancies have increased for some property types, rental rates have remained relatively stable or increased for some property types in some sub-markets.  The answer to the question, "have sales price decreases been uniform," is no, there has been a great deal of variability in the market.

 

 

 


[1] Las Vegas May 2008 Home Sales Report, http://www.dqnews.com/News/Las-Vegas/RRCLNV080723.aspx

For more appraisal information contact Glenn Rigdon, MA, MRICS, ASA a Las Vegas / Henderson Nevada appraiser via email or via his business website Horizon Village Appraisal (http://www.horizonvillageappraisal.com), or you can also click on “Contact Us” on the home page of this website.

 

 

 

Article source: http://www.appraisalarticles.com/Real-Property-Appraisal/9-Have-Real-Estate-Price-Decreases-Been-the-Same-in-All-Areas.html

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