The news regarding the housing market in Las Vegas just gets worse and worse:
Las Vegas-area home prices fell again in September to a new low during the current recession, Standard & Poor’s reported Tuesday.Here are a few more statistics to ponder:
Stung by elevated unemployment and high levels of foreclosures and underwater mortgages, Las Vegas saw housing prices fall 1.4 percent from August and 7.3 percent from September 2010, Standard & Poor’s said.
Data from Standard & Poor’s S&P/Case-Shiller Home Price Indices show Las Vegas-area prices are now at levels last seen in February 1998 after September’s decline.
Tuesday's data follows release of statistics by the Greater Las Vegas Association of Realtors Nov. 8 finding that in October, the median price of single-family homes sold locally was $121,000. That was down 1.9 percent from $123,400 in September and down 9 percent from $133,000 in October 2010.What has happened to Las Vegas is really quite simple: during the bubble years a whole host of gamblers in the casino and construction industries made a sucker bet that the party would go on forever. Then the music stopped, the lights came on and the $1000-a-night hooker turned out to be a middle-aged transvestite.
Also Tuesday, mortgage data provider CoreLogic reported that at the end of the third quarter, Nevada had the highest negative equity percentage in the nation with 58 percent of its mortgaged properties underwater, down from 60 percent in the second quarter.
In the Las Vegas-Paradise Metropolitan Statistical Area, 61 percent, or 257,345 of residential properties with a mortgage, were underwater, CoreLogic reported.
The recently reported national numbers for housing were not a whole lot better than the Las Vegas figures. Without a recovery in housing, there will be no recovery in the real economy. So rest assured, what has happened in Vegas isn't going to stay in Vegas. It will be visiting your city, town or state sometime in the near future.