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The Las Vegas residential real estate boom peaked a decade ago this month.
In June 2006, the Greater Las Vegas Association of Realtors reported that the median sales price for existing single-family homes reached $315,000.
From those lofty heights, the market crashed over the next few years before bottoming out in 2012, when the median home price hit $118,000.
Prices have nearly doubled since coming out of the Great Recession, with the median home price reaching $229,250 in May, up 8.5 percent year over year.
Scott Beaudry is the president of the Greater Las Vegas Association of Realtors. He told KNPR's State of Nevada that home prices have gone up because of simple supply and demand.
"We're at a three month supply of inventory of available homes versus six months, which is more of a normal market," he said.
Ed Coulson, the director of the Lied Institute for Real Estate studies, does warn that if the price increases are being driven by normal demand factors it is fine, but if the increase is from speculation it is concerning.
"If speculation returns to the valley, then we're going to see a re-run of what happened prior to 2006," he said.
Coulson said after the housing crisis many big investors came in and bought up homes to rent out, helping the housing market recover. Many of those investors have not sold those homes, which is helping the market stay steady.
Despite the positive signs, Joe Dagher, a broker with Northcap Realty, believes the valley is a "small economic bubble," and he thinks there will be a "small correction in the future" because of all the new home construction going on.
For his part, Beaudry is not worried about over building. He said the new home developers he has talked to are looking to the future and are not interested in flooding the market.
Besides new home sales, the housing market is still being influenced by underwater homes and people still recovering from the recession, Coulson said.
“There is still a hangover from the great crash,” he said, "Las Vegas still has about 20 percent of its properties underwater. This is contributing to the short supply because people naturally don’t necessarily want to sell their houses when they’re still underwater.”
He said that is why resale numbers are down a little bit.
Ed Coulson, director, Lied Institute of Real Estate Studies; Scott Beaudry, president, Greater Las Vegas Association of Realtors; Joe Dagher, broker, Northcap Realty
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