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Las Vegas home prices are rising at one of the fastest clips in the country, with builders fetching record dollar amounts and resale values approaching prior highs.
The growth is so fast that, according to a new report, prices here are the most overvalued in the country.
Southern - Nevada - Home - Prices - Percent
Southern Nevada home prices were 20 to 24 percent overvalued in the first quarter, Fitch Ratings reported Wednesday. That’s up from 15 to 19 percent overpriced in the same period last year and 10 to 14 percent overvalued in the first quarter of 2016.
Las Vegas was the most overpriced market among the 20 listed in Fitch’s report. The credit-ratings company deemed prices sustainable in six metro areas, undervalued in two, and overvalued in the rest.
Locals - Las - Vegas - Fitch - Report
Locals often wonder whether Las Vegas is in another bubble, and Fitch’s report might be viewed as a warning of sorts about the valley’s increasingly heated housing market.
But the leader of Southern Nevada’s largest real estate association strongly disagreed with the findings, citing, in part, differences between today’s market and that of the mid-2000s, when Las Vegas was ground zero for America’s housing bubble and not long before it was the epicenter of the crash.
Report - Fitch - Items - Unemployment - Income
For its report, Fitch looked at, among other items, unemployment, household income, rent levels and mortgage rates, according to Fitch analyst Grant Bailey.
Las Vegas’ rebound from the recession has been strong, but it has sparked momentum that has caused “prices to overshoot,” he said.
Bailey - Prices - Sign - Accelerating
Bailey added that prices show “no sign of slowing down” and instead keep accelerating.
The median sales price of previously owned single-family homes, the bulk of the market, was $295,000 in May, up 18 percent from a year earlier, the Greater Las...
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