Las Vegas housing reasonably affordable

In Coldwell Banker's 2007 Home Price Comparison Index, which just came out the other day, Vegas ranks way down the list from the most expensive metropolitan areas. They used as a base a 2,200 sq. ft. house with four bedrooms and two and one-half baths and surveyed a total of 394 markets in the U.S., Canada and Puerto Rico. It's really called a "snapshot" study because of its limited range.

When you compare this year's results to those of 2006 the HPCI tells us that 148 markets experienced an increase in values and 139 a drop. The HPCI national average stands at $422,343 and Vegas' number is $362,188, so we are quite a bit under the norm. It comes as no surprise that eight of the top 10 most expensive cities are in California. On the other hand, a few Texas locations and the Midwest dominate the most affordable end of the rankings.

Median price for resale homes here has decreased 5% to $275,000 and new home price, in a reversal, edged up 4% to $335,560, as recorded by Home Builders Research. As a reminder, the HPCI uses a typical 2,200 sq. ft. house as its base.

We have to remember one thing, though. Pricewise Vegas appears affordable, but when household income, the other crucial element in determining affordability, is factored in, we suddenly become less so. Historically household incomes here have been relatively low and continue to do so.

Photo by radicle2