In a latest census report for population growth between July of 2006 and July of 2007, Las Vegas was ranked in the top 10 for population growth. Fastest Growing Areas.
Four Texas metropolitan areas had the biggest gains and not surprisingly, these were in cities that did not have the huge real estate appreciation rates seen in areas such as Arizona, Nevada and Florida.
Housing affordability and Jobs were obvious factors in the population changes as people continue to bail out of cities such as Detroit, Pittsburgh and Cleveland.
Keep in mind this U.S. Census Bureau study was performed betweeen July of 2006 and July of 2007. For Las Vegas real estate experts in the know, we are well aware that Las Vegas home prices have dropped significantly since July of 2007 and just now we have appeared to hit a bottom as evidenced with multiple offers that will come in on a Las Vegas Home if it is priced right.
We’ve seen some Las Vegas homes in neighborhoods that were selling in the mid 300,000 range now selling in the mid 200,000 range since this study was performed.
“People are running away from unaffordable housing, from the economic slowdown,” said Karl Eschbach, a state demographer in Texas. “I would expect Texas to stay at the top of a slowing game.”
That’s certainly possible but the game has changed since this study was performed. When a good friend of ours moved to Austin back in 2005, we were amazed by the price of the Austin Texas home for what they got. The real estate property taxes also amazed us at over $1,000 a month when a comparable Las Vegas home with the same value would have been in the $2,000 to $3,000 A YEAR range for Property Taxes.
Remember, it’s not just about the price but the cost of living. Real Estate property taxes may not be reflected in the price of a home but it’s certainly going to be a big part of your yearly expenses no matter what your mortgage is. Property Taxes are not something you can pay off and never worry about again because they come back each and every year. And if anybody could ever show me where a local government that relies on property taxes has a surplus and reimburses their property tax rates for a regular home owner, please forward it to me. The real estate boom was also a boom for local governments in the form of higher revenues from transfer taxes, new homes and permit fees. As next year’s budgets are made, these governments will have a choice between raising taxes to make up for the short fall, or cut services. If you live in a city such as Chicago, the choice has been made to raise Taxes on what seems to be everything including taxing bottled water and raising transfer tax rates.
Things have certainly changed since the time period of July of 2006 to July of 2007. In 2006 we were busy selling Las Vegas homes and people were cashing out of their big gains and moving to areas with lower home prices such as cities in Texas. Honestly, I was actually kind of surprised that Las Vegas made the top 10 for this time period since 2006 prices for Las Vegas real estate were at incredible highs.
Today that’s changed and we are helping more people relocate to Las Vegas then move out of Las Vegas. Just off of the top of our head we are in the process of helping clients relocate to Las Vegas from Minnessota, Atlanta, New Jersey, England, and California (as always!).
Karl is certainly right about people running away from unaffordable housing but I don’t think he’s right about metropolitan cities in Texas staying on top. My prediction is that the next study is going to be a little different and cities in states such as Nevada, Arizona and Florida that have already had big drops in their real estate values will retake the top 5.
A $400,000 home in Las Vegas can certainly be a lot cheaper then a $400,000 home in Texas or Chicago when you consider the ”Big” Picture. My opinion, but the newest trend taking place is Saving Money and not spending it. It’s kind of hard to save money on something such as local taxes that are not going to go away… or even worse, go higher on everyday items that are already going up in price due to inflation.
Last year’s stats can certainly be interesting and it’s making all of the big news outlets but in reality, it’s yesterday’s news. You can read today’s Las Vegas real estate trends by clicking here and subscribing to this blog. It’s just as easy to unsubscribe if the posts get too salesy for you.
Paul Francis, ABR,CRS | Coldwell Banker Premier | Las Vegas Real Estate | 702.592.3058
