Vegas real estate prices lower

Maybe that's the medicine we need here. Lower real estate prices, that is. Well, I understand, no one wants to see his house value drop, and that includes me. The equity you were counting on could be 5% less in a matter of months. Or 10% less. Or even more than that. Anyway, the market here is still reeling and the sooner we get to the bottom of it, the sooner it can settle down and then return to normal again. Right now we are in a wait mode that serves no purpose.

According to a local analyst Dennis Smith, in May the price of a new single family home declined 3% to $308,874, when compared with April's figures. On the resale side, the price drop was 2.5% to $278,000. The resale number is especially encouraging, yes it is despite going down, because now it seems that the sellers, most of them are speculators, are at last realizing that to unload a property is entirely possible so long as the price is right. I'm going place a minor wager on this trend continuing for a while.

The economy in Southern Nevada remains strong and people are still moving here at a good pace, 5 to 6,000 a month. That is solid inbound movement. But what they are doing once they get here is sit on the fence and study the scene. Local and national media have been all over the spectrum with negative real estate stories and that can make anyone hesitant. That is totally understandable.

How long is this apathy going to last? No one knows. I certainly don't. Six months? Twelve months? Longer? It's anyone's guess.