www.lasvegasmtg.com Report: Las Vegas, Nevada 2009 Housing Report shows that 2009 was the second highest year in home sales since 2004. Most of the attention has been focused on the number of foreclosures that are in some stage in Las Vegas, Nevada in the press, but the real story is the demand for Las Vegas housing is still alive and with a strong heartbeat. With a record high unemployment rate in Las Vegas only seen during the 70's that also had a record high foreclosed homes during this same time. During the 70's it took the unemployment rate 18 months to recover, but the housing market really did not recover for many years later as the double digit interest rates held back the housing rebound.
I find it interesting that during the time that interest rates were in the double digits the housing market saw the smallest increase in home values. As interest rates started to declined home values rose in the opposite direction and reached its peak in 2005. While the affordability is increased with lower interest rates for buyers, it was offset with higher home values. Was this a natural response to market condition that morphed into a cancerous growth? Or was this a carcinogenic that we were spoon fed with loose loan programs, manipulated builders weekend lotteries for homes, fast money rumors on making millions by investing in real estate? Ad the fear we had missed the boat, we now have made a perfect toxic cocktail that we drank with glee. Like any indulgence that goes to excesses we are now experiencing the difficult time for treatment and recovery, but we will recover. Just look at the second highest number of sales in the history of Las Vegas, Nevada housing report.