We all know that home prices are presently retreating from the projected values of just 6 to 8 months ago. Our median home price is now hovering around to $309,000 to $310,000 based upon sales figures recently reported by the Greater Las Vegas Association of REALTORS. Last December, our median price was $312,500. So, a softening trend is emerging and it is being closely watched by all of us in our industry.

I believe this merely represents the normal and natural market cycle. We have seen a predictable response to the rising interest rates and the inevitable expansion of inventory in the valley. Furthermore, rising land costs have contributed to a general anticipated rise in future values, as have the increasing costs associated with building new product.

While we may see single digit inflation in the near future, I believe that it is just a matter of time before the normal market corrections will occur. Our company, National Properties, is heavily involved in property management and we feel that rents will also rise in the future as more and more people find home prices difficult to approach in regard to an out and out purchase.

The important thing to remember is that we usually mimic many of the housing trends in California and other major metropolitan areas. When many said that California prices could not continue to appreciate like they had, they were only partially correct. It was a matter of degree. Double digit inflation certainly slowed down, but their prices have continued to remain stable at a higher median price point  than most experts would have predicted 5 or 10 years before.

So, is it a good time to buy in Las Vegas? Absolutely. There are many, many motivated sellers that are offering some tremendous values. I believe that many of those sellers have seen substantial equity gains and those that are moving within the Las Vegas Valley are moving because it is a great time to take advantage of some of the exciting new housing product that is available.

Greg Hartline (c)2006