BluefoxToday blog : Las Vegas real estate among most affordable again

Las Vegas real estate among most affordable again

Venus pool at Caesars, Las VegasSouthern Nevada - like Green Valley, Summerlin, Henderson, Spring Valley and Eldorado - was rapidly pricing itself out of the housing market a few years ago. The recent unforgettable boom pushed home values way past the average household income, forcing many to buy property with flexible mortgages that they really couldn't afford, or leaving others out of the market altogether.

That was the flavor of the Las Vegas real estate scene then. Things, fortunately, have changed drastically from those days.

BusinessWeek.com and a research shop Reis made some advanced calculations to rank the top 20 cheapest housing markets in the whole nation. The study actually compared how much it costs to own and maintain a home vs. renting one. Reis put these figures together from its own second quarter rent statistics and from Zillow.com's second quarter home price records. And the envelope, please.

Vegas fought its way to the 11th spot on the list. The own-versus-rent equation here has greatly narrowed now as prices have taken a major pounding, largely on account of oversupply and mortgage foreclosures, and home loan rates have remained nice and low. According to this report the own/rent ratio in Southern Nevada is 131%. If the figure is below 100%, it's cheaper to own a home than rent. In any case, at 131% it's a bit more expensive to own a place today, but the difference is now rather manageable.   

Las Vegas has become once again an affordable place to own a home in. Like it used to be not that long ago. First-time home buyers are having a time of their lives picking and choosing moderately-priced property from a huge inventory, often using an FHA mortgage loan that offers a low down payment option and reasonable underwriting criteria. They may also qualify for the first-time buyer's tax credit of up to $8,000.

By the way, the top three places on this most affordable list went to Detroit, Pittsburgh and Rochester. N.Y.

 

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Provided by: 

Esko Kiuru
Mortgage, real estate and apartment industry analyst 

www.BluefoxToday.com - syndicated mortgage, housing and property management blog

eskokiuru@gmail.com
My cell: 702-499-1006

Comment balloon 12 commentsEsko Kiuru • August 27 2009 01:12PM

Comments

Esko, the most affordable and cheapest means Vegas has hit bottom and there is nowhere to go but up!! Good luck to you with all your financing!!

Posted by Gary Woltal, Assoc. Broker Realtor SFR Dallas Ft. Worth (Keller Williams Realty) over 9 years ago

We will never make the most affordable list, but I will stick with Hawaii.

Aloha!

Posted by Randy Prothero, Hawaii REALTOR, (808) 384-5645 (eXp Realty) over 9 years ago

Esko, isn't it amazing what the market will do all on it's own if we just leave it alone.  I wonder if the government will ever learn that lesson.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) over 9 years ago

Esko,

I haven't been in the Rain much this week, but I wanted to say THANK YOU for adding me as an associate!  All the best,

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) over 9 years ago

Esko,

Whenever real estate prices outpace salaries, there has to be a correction, right? It is great to see so many home buyers taking advantage of the now affordable prices in Las Vegas. #11 is not too shabby.

Kate Ford

Posted by Kate Kate over 9 years ago

Gary,

That's what we are working on, go up.

Posted by Esko Kiuru over 9 years ago

Randy,

You've got a nice place to stick with, no doubt.

Posted by Esko Kiuru over 9 years ago

George,

Looks like we are finally about to turn the corner.

Posted by Esko Kiuru over 9 years ago

Mike,

Any time.

Posted by Esko Kiuru over 9 years ago

Kate,

Vegas is returning to the good old days.

Posted by Esko Kiuru over 9 years ago

It makes absolute sense to at least try to qualify to buy right now if you are a renter!  I have got so many first time buyers into homes this year, single family homes - with their own yards - and garages, and their payment ended up less than what they were paying in an apartment!

If you are a renter reading this, Call Esko to get pre-qualified!  He doesn't bite and it doesn't hurt to check to see if you can get into a home for lower than your current monthly rental payment!

Posted by Renée Donohue~Home Photography, Western Michigan Real Estate Photographer (Savvy Home Pix) over 9 years ago

Renee,

The good old times are back when it comes to affordable housing prices.

Posted by Esko Kiuru over 9 years ago

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