Not in Las Vegas! Data shared by research firm Sales Traq, shows quite the opposite. In fact, during the third quarter of 2007, the Las Vegas Valley may even be experiencing a local housing shortage of new homes.

The median new home price in Las Vegas was $323,000 during September, which is up 7.7% when compared to September of 2005.

Existing homes posted a 0.4% appreciation rate, with the median price at $285,000 from September 2005 to the end of the most recent quarter. That small gain in value came despite a big jump in inventory. GLVAR (Greater Las Vegas Association of Realtors) shows resale inventory in September at over 20,000 units, which is up 57.4% from the same month a year ago.

In the long term, housing prices in Las Vegas have continued to go up. You’ll see fluctuations if you where to measure day to day but, year to year our market is perfectly healthy and intact.

Today’s for sale inventory of nearly 21,000 units represents about 3.5% of the valley’s base of 650,000 homes. In a metropolitan area of 1.8 million people, 21,000 units is very normal.

Builders are very cautious about overbuilding in the market, there are far fewer construction permits being issued than in recent years. Residential building permits are down over 20% in 2006 when compared to 2005. Builders have stopped pulling permits like never before. Prepare for the next housing shortage!

With the current job-formation rate of 5.3%, Nevada far outpaces the nation’s 1.3% average. NO OTHER STATE IS ABOVE 4% IN JOB GROWTH.

There is $25 billion in new developments planned for the next four years on the Strip, this will drive the future economic growth.