Q: “There have been some research reports in the last year that Las Vegas’ market is overheated, and locally, there’s an ever-present concern about whether we’re in a bubble or about to enter one. Do you think Las Vegas is in a bubble or on the cusp of one?”
A: “If one was to look at the metrics like home prices in relation to income, one might say that Vegas is overvalued. However, in terms of the likelihood of a price decline, the answer is no. It’s fundamentally different from 10 years ago; we don’t have easy lending, and we don’t have an oversupply of homes. Lending standards are very tight, and we have a lack of supply.”
Las Vegas’ housing market is gaining speed with fast-rising prices and increased construction.
And as Lawrence Yun sees it, prices won’t tumble anytime soon, and builders need to build more to boost inventory.
Yun, the National Association of Realtors chief economist, gave a presentation Tuesday at a Nevada Realtors conference at the M Resort. Before he spoke, he met with the Las Vegas Review-Journal to discuss Southern Nevada home prices, which are rising at one of the fastest rates nationally; the market’s low inventory; and whether another bubble is inflating.