“So we finally bought our first house. It was me, my wife and my son. The time was a great because business is booming. Everything was moving along. And then it happened. 2008 hit us as if Hoover dam completely collapsed and unleashed all the force of its water on to Las Vegas. Our $650,000 home was now worth about $200,000 overnight. The sad thing was the stance the bank took. After months and months of struggling with the payments, I went to my bank. I told them, you have my loan at over $600,000 for a house that’s worth close to $200,000. And I’m really struggling to keep it afloat. Is there anyway we can renew or refinance the home loan closer to like maybe $400,000? They basically laughed in my face and told me to leave the bank.
Needless to say, we lost the house and had to move into an apartment. Here comes the really sad and disturbing news. Within 30 days of moving out of that house, the bank that laughed at my $400,000 refinance offer turned around and auctioned off my house $170,000. ~ G. Thomas – Current Resident of Las Vegas, NV
This was basically a very familiar story for most of the people here in Las Vegas. Actually for most of the people in the US, but with Vegas getting hit extremely hard.
The Real Las Vegas Roller Coaster
I know that Disneyland and Magic Mountain in California are known for their roller coasters and rides, but Las Vegas is King when it comes to real estate roller coasters.
In the last 12 years, Las Vegas has experienced one of the highest jumps in real estate market value, to one of the lowest lows, and now back to one of the highest highes and back to where it was prior to the 2008 bubble collapse.
Think about this. In 2006 the real estate market in Las Vegas hit an all-time high. The median price of a single-family home in the Las Vegas area was $312,000. Fast-forward three years to 2009, and that median price dropped to $120,000 with the lowest house price in a Las Vegas ZIP Code was $42,000. Fast-forward one more time to 2018, and the median price of a house in Vegas has jumped again to $280,000, which is actually the highest in the last 11 years.
Maybe that’s why they say when things look really, really bad, that’s when you should buy. Imagine actually going out and buying a house in Las Vegas or anywhere in the US for that matter back in 2009 or 2008 when home prices were actually falling.
But obviously a few investors knew what they were doing. Because between 2009 and 2011, many investors or anybody who had cash-on-hand basically came to Las Vegas and was buying up real estate at an alarming rate. I guess what they say is true. You can never ever go wrong with real estate.
But Why Such A Jump And Why Las Vegas
But why such a big jump in such a short time. And why in Las Vegas. I asked a real estate agent who’s lived in Las Vegas for a few years now and he told me this.
“Well it comes down to this. It’s actually very simple. This trend has been common all over the world for many many years. Housing increases greatly in a major metropolitan city, then people build further and further away from that city, and of course the further you go out the better price you get.
I first noticed this actually between two major cities in Northern California. San Francisco and of course the state capital of California, Sacramento. San Francisco’s real estate prices as everyone knows grow at an astonishing rate. So about 15 to 20 years ago there were a lot of people selling their small older homes in the San Francisco area for anywhere between $800,000 and 1.5 million (just an example). Driving an hour and a half to a growing metropolitan city in Sacramento, purchasing a brand-new four-bedroom home for $200,000 and basically pocketing the rest. For some people this was worth commuting from Sacramento to San Francisco for work. That’s 90 miles one way. I know it sounded crazy back then but now it’s an everyday occurrence pretty much all over California.
Now in the case of Las Vegas you can still purchase that brand-new home for a few hundred thousand dollars but still stay within the vicinity of the city. This doesn’t happen really anywhere else in the country. Think about it. Brand-new luxury style apartment buildings, brand-new or fairly new single-family homes, both at affordable prices (whether renting or buying), very close to the center of a major metropolitan city, very good climate, very little traffic, quick 4 hour drive to Los Angeles, should I keep going? It’s a win win win win . . . . (you get the idea).
So although the you had home prices peeking back in 2006, dropping in 2008 and 2009, and picking back up to an 11 year high currently it’s always been a bargain compared to the rest of the US and the major metropolitan cities based on all the benefits and features Las Vegas has to offer.” ~ Triantaphyllou – Realtor- Addicted Realty
Man when he started naming all those features and benefits, hell I want to move to Vegas same day. Hahaha.
All around Vegas does make a lot of sense. And may not be the perfect place obviously for a lot of people. But it makes a lot of sense for quite a few people. In fact Las Vegas is experiencing a population boom. But in all reality, they been experiencing this boom for the last 20 years. Every year it’s one of the top destinations for people to move to. And not only just people moving as new residents but businesses and investors are capitalizing on the opportunity in Las Vegas.
In fact since 2011, over 9,800 new businesses have started in the state of Nevada. And Las Vegas is a big part of that.
Under an article in Forbes magazine, Las Vegas is the number six fastest growing city as of 2018 had a population growth of over 2.4% and as for projected job growth they are number one in the country with a 3.2% rate. In fact. Under America’s fastest-growing cities, Las Vegas has ranked in the top 10 for I believe the last 20 years.
So as you can see, it may be called sin city, but Las Vegas is definitely a city you have to visit at least once. And who knows . . . You might even end up staying here.
Originally posted 2019-02-12 04:04:35.