Nevada leads all states in home price surge

By Bev Llorente, ABS-CBN North America Bureau

LAS VEGAS – U.S. home prices surged 11.9% in June from a year earlier, reflecting stronger demand, amid a tight supply of homes for sale.

Corelogic, a real estate data provider, said home prices climbed in 48 states.

Nevada led all states with an annual gain of 26.5%.

In 2008, Nevada led the nation in housing foreclosures. About 1 in every 17 households was on the verge of losing their home because people were also losing their jobs.

Two years ago, when the Las Vegas housing market hit rock bottom one can buy a condo unit for less than the price of a luxury car.

But those days are gone.

In 2013, the Nevada housing market is once again the nation’s most coveted market for houses. Home prices are soaring while the inventory shrinks. The median home price in the valley is now at $175,00 USD.

“The supplies have dwindled to about two months worth. A healthy real estate market should have at least an average 6 months of supplies. A lot of big hedge funds companies in town have been picking up the low priced homes and turning it into a long term
rentals,” real estate broker Ernest Che Bendecion said.

Last year, las vegas sold almost 45,000 homes, the third highest selling point record for Nevada since 2005 and 2006.

A lot of buyers but not enough supply.

“With the rate that investors are picking it up i see it. Theyre buying plenty of homes they have plenty of money. But a lot although people are coming in thinking they can still buy a home for $75,000 it doesn’t exist,” Bendecion said.
Foreclosures are down to at least 30 percent from a year ago.

Steady price increases are the latest sign of a recovery in housing. Stable job gains and still-low mortgage rates have encouraged more Americans to buy homes. Greater demand, along with few homes for sale, has helped push up prices.

-with reports from Alex Veiga, Associated Press

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