Seven years after the bubble burst, stability may be the new normal for Las Vegas — a long-awaited respite after several months of tremendous growth. According to the Heidi Kasama, the president of the Greater Las Vegas Association of Realtors, the stabilization is “a welcome change” for the area, and will represent a major shift from last summer when investor interest was so high it was outpacing inventory and blocking out other buyers.
“Investors were coming because prices were so good, but now that prices are stabilizing large groups of investors are stepping back, and that’s fine,” she said. “There were so many buyers and families that couldn’t get a home because there were so many investors, and now they have an opportunity.”
The Standard & Poor 20-city home price index for July showed an annual gain of 12.8% in home prices for the beleaguered city — the best in the nation. That’s a big increase, but it’s down from an almost 30% jump last year. Kasama expects that comparatively modest growth rate to continue in a “slow steady march” for the next several years.
Freddie Mac Chief Economist Frank Nothaft cautions onlookers to remember where Las Vegas came from before reading too much into the huge growth. While the Las Vegas metro area has improved significantly, he explained it is still the weakest in the nation.