It wasn’t too long ago that many Southern Nevada homeowners felt the painful sting of collapsing home prices, as deceptive lending practices, low interest rates, and highly leveraged investors caused the bursting housing bubble. While most of the nation felt their home values decline at some level, Las Vegas felt it the hardest and is considered ground zero for the housing crises.
Since national and Las Vegas home prices reached a bottom in 2012, values have been steadily on the rise. National prices have recovered almost all their decline, as current values are only 4.25% below their 2006 peak.
Home prices in the Greater Las Vegas Valley have have seen significant increases in values over the same time; however, prices are 34% below their inflated 2006 peak.
The Federal Reserve has increased interests rates three times since December 2015, as national home prices, employment, and stock markets are on the rise. Many economists expect interest rates to increase over the next several years as the economy continues to show improving economic momentum, which would add some headwind to rising Las Vegas home values.
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