Local Home Prices
SalesTraq has put the median new home price in Las Vegas at $323,000. This is up 7.7 percent from this time last year. The Las Vegas based housing research firm says that this is great news for local consumers.
However, some analysts are saying that the median price is a very inaccurate measure of value. Many say that this is true because there is a huge variation between homes.
Andrew Pugh of SellFastLV.com says that while median home prices are up, the volume of Las Vegas homes being sold have dropped off. According to Pugh the stats are set up to fail.
Pugh says, "If only three houses sell in October for $321,000, $320,000 and $55,000 will the (Review Journal) report that home values are rising since the new median $320,000? Perhaps using price per square foot or another measure that gives price in relative terms would be more meaningful".
Pugh also claims that homes that sold as new last year were being sold as resales. This leads one to believe that if the new home median is roughly 10-15 percent higher than the resale median, you could expect the resale prices to increase even if the existing home prices remained the same.
Leave a comment