www.lasvegasmtg.com Report: Magic 8 Ball Housing prediction for 2010 in Las Vegas, Nevada is based on a article from Hubble Smith from the Review Journal on January 22, 2010 titled Crystal Ball presenter says sales to rise, prices to fall. The speaker Larry Murphy at at a Real estate Convention held at Sun Coast spoke to 200 attendees and stated that 2010 will look like 2006 with no appreciation in housing and skipping at the bottom of values that has been seen for the last year.
New Home Sales will increase from last year's closings of 5,184 but Larry Murphy believes that the prices on these homes will actually drop for the same type of homes.
Larry Murphy last year predicted the median price would reach $100,000, but the median housing price held at $120,000 through December 2009. This was still down by 25% from December 2008 median price. Larry Murphy stated "I told people we won't recognize the bottom the day or the month it hits," Murphy said. "It'll take six months to look back over our shoulder and say, 'I think that was the bottom.' I think we're going to see a year pretty much last like year."
Existing home sales in 2009 had increased by 58% to 48,075 closed transactions, but new home sales decreased by 48% and the median price also declined.
While I believe that there is a shadow inventory of over 40,000 homes the banks own, Murphy is predicting only 26,000 foreclosed homes will come to market and this is a 2,000 increase from 2009 inventory that were released.
Murphy stated that Banks are now starting to realize that median prices on short sales average is $150,000 versus the median price of $116,000 on Foreclosed properties that it would be the banks interest economically by approving more short Sales for 2010. We shall see if this is the case.
Murphy stated as I have in past articles that "Strategic Defaults", people deciding to walk away will still be the trend for 2010. Based on the assumption that if you purchased a home for $300,00 and it is now worth only $150,000 it would take 20 years at 5% appreciation a year to break even!
While Las Vegas, Nevada has seen in last few months a increase in visitor volume and gaming revenues, and add the number of home sales in 2009 increasing, it will still be a year of transitions for 2010 forLas Vegas before we see any stabilization. Go here to read the full article Crystal Ball sales to rise and prices to fall.