Las Vegas has suffered through the housing bust like few others places and still has further to fall. But these days many real estate investors and home buyers are betting that it’s poised to stage a comeback.
Sin City’s metro area led the nation in mortgage defaults for 22 straight months through August and home prices plunged a whopping 60% from their 2006 peak, according to RealtyTrac. And prices still have further to fall. Financial analytics company, Fiserv, projects home prices in Las Vegas could fall another 16% by next June.
But to investors and home builders, there are enough positive signs to start betting on Vegas now.
Home sales, especially of bank repossessions, have picked up significantly. Nearly 36,000 homes have been sold so far this year through September 30, an 11% increase compared with the same period in 2010, according to Lawrence Yun, chief economist for the National Association of Realtors.
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In fact, the beaten down prices are exactly why investors are starting to nab the properties now, explained Ken H. Johnson, a professor of real estate at Florida International University. Homes cost about one-third less in Vegas than the national average based on median prices compared with median incomes.
Read : “ Is Las Vegas’ housing market ready to make a comeback?” by CNN Money