National magazines predict major decline for Las Vegas housing

BusinessWeek analysts predict Las Vegas housing will lose the most of any major city in 2007 with 9.9 percent of its value disappearing, much more than the nationally projected loss of 1.7 percent. According to BusinessWeek, which interviewed economists and leading real estate firms, the median home price will fall from $324,000 to $292,000.
The magazine's analysts went on to say that a decline in home sales in 2007 will set the stage for another year of price decreases in 2008 across the country.
Fortune ranks Las Vegas behind Stockton, Calif., on its list of markets facing a decline. The magazine predicts prices will drop 6.6 percent in 2007 and another 8.1 percent in 2008 based on comments from analysts at Moody's Economy.com and real estate valuation company Fiserv Lending Solutions.
The National Association of Realtors, meanwhile, predicts that existing-home sales for the nation as a whole will rise gradually through 2007 and into 2008, while new home sales should turn around by summer. NAR Chief Economist David Lereah said existing home sales won't change much from 2006 to 2007.
He projects 1.51 million housing starts in 2007, the lowest in a decade as builders pull back on new construction to support prices of remaining inventory." read more

By Brian Wargo / Staff Writer