Latest released statistics show that the Las Vegas real estate market is still 24% BELOW where it should be based on total economic indicators. These economic indicators take into account average local income vs housing costs and rent ratios, Experts believe that even with a 31% appreciation rate over the past year, property prices will continue to increase steadily until Vegas reaches its true market value in another year or so. Resale prices are considerably below the costs of new home construction and demand is far outstripping supply.
Below is a chart showing the top ten most undervalued real estate markets across the United States. All the other areas are centered in the midwest and Florida, making Las Vegas by far the best housing value on the west coast. The other good news is that because of these price increases, far fewer Nevada homeowners are underwater on their mortgaages. To read the entire article in the Las Vegas Review Journal, click here.
|Top 10 Undervalued Metros|
|Rank/U.S. Metro||Prices relative to fundamentals, 2013 2nd quarter||Prices relative to fundamentals, 2006 1st quarter|
|1. Las Vegas||-24 percent||70 percent|
|2. Detroit||-23 percent||37 percent|
|3. Palm Bay-Melbourne-Titusville, Fla.||-22 percent||75 percent|
|4. Akron, Ohio||-21 percent||17 percent|
|5. Cleveland||-21 percent||18 percent|
|6. Warren-Troy-Farmington Hills, Mich.||-20 percent||30 percent|
|7. Jacksonville, Fla.||-18 percent||44 percent|
|8. Toledo, Ohio||-18 percent||21 percent|
|9. Dayton, Ohio||-17 percent||13 percent|
|10. Lake County-Kenosha County, Ill.||-17 percent||29 percent|
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