The Bigger the Bubble, The Harder It Popped - 8 News NOW

Desert Underwater

The Bigger the Bubble, The Harder It Popped

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While other states have seen greater price declines during the past year, Nevada dubiously takes the top spot for home value deflation between the bubble's peak through today.

Home prices peaked in the Las Vegas metro area in April 2006, according to the S&P/Case-Shiller Home Price Index. The Office of Federal Housing Enterprise Oversight similarly found that the home price peak in Nevada occurred in the second quarter of 2006.

According to the Federal Housing Finance Agency, a home purchased in Las Vegas for $200,000 in the second quarter of 2001 would have been valued at $410,192 in the second quarter of 2006. But a $200,000 home purchased in the second quarter of 2006 would have been worth only $81,953 in the second quarter of 2011.

Nevada led the nation with a 58.1 percent drop in home prices from June 2006 through June 2011, according to the FHFA, and had the nation's fourth highest decline, 13.4 percent, from June 2010 to June 2011. The price decline has been so sharp that FHFA found Nevada home prices increased only 13.6 percent in value from March 1991 to June 2011, by far the lowest appreciation rate in the nation. The average U.S. home values during that period increased 79.6 percent.

S&P Case-Shiller similarly reported that home prices in Las Vegas in August 2011 were 59.5 percent below their peak five years ago.

The Greater Las Vegas Association of REALTORS reported that the median price of single-family homes sold in Las Vegas in September was $123,400, up 2.8 percent from $120,000 in August. The median price of condominiums and townhouses sold in September was $56,500, up 0.9 percent from $56,000 in August. But in October the median price of homes sold dipped 1.9 percent to $121,000 and remained 9 percent below last year's prices.

Townhouses and condos fetched a median $59,000 in October, 4.4 percent better than the prior month but 9.2 percent below a year ago.

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