Las Vegas housing weak in 2007

2007 was one of those years in Las Vegas residential real estate that many will remember for a long time. The glut of homes on the market, new and resales alike, from single-family houses and townhomes to condominiums, put tremendous pressure on prices. On top of that the mortgage industry ran into homeowner and investor payment problems and as a result foreclosures began to rise steeply. In summary, it was an ugly year.

New home sales totaled 19,670 for all of 2007, a serious 45.6% decline from 2006. On the resale side last year's final number was 24,838 which amounted to a 40.7% drop from 2006, as was recorded by Home Builders Research. Combined sales haven't been this low since 1997 when they were 39,187. This last comparison alone is enough to indicate how far the market has thus far dropped.

The price structure has pretty much followed the same path. The median new home value decreased 20.1% to $273,359, while the existing one slid 11.2% to $253,000. The importance is that today's median is at about the same level with 2004, erasing some hefty gains made that year and to some degree the next. As the market seeks to recover its health those absurd appreciation rates at the pinnacle of the boom are being neutralized, which really is the only route to go.

Yet, despite the obvious weak spots in the mortgage and sales sectors, the market is ripe for the taking by the buyer. Home loan interest rates remain low and prices are rather advantageous, so what else can he ask for.