A leading appraisal firm in Las Vegas has predicted that the Las Vegas real estate market will begin to rebound by the spring of 2008. Don Foster Scoggins, a Nevada Certified General Real Estate Appraiser states “There is a huge pent-up demand for homes in Las Vegas, but buyers cannot or will not buy right now. Those who can’t buy because of financing will find FHA or other loan products along with lower rates in the coming months. Those who won’t buy because of market uncertainty will start snatching up homes as investments as they expect price appreciation and profit for fixer-uppers, foreclosures and flips.”
Scoggins believes that Las Vegas housing prices will start to improve in March, 2008. This is the beginning of the selling season, which Las Vegas and Henderson did not experience in 2007 because of buyer concern over falling prices and the lack of available money for loans to finance home purchases. Scoggins states “In March, 2008 we will see the trend resume. Even a modest number of sales will jerk the slack out of the oversupply train and begin the turnaround.” At this point, prices will begin to appreciate slowly, getting back to 2006 prices in about two years.
There are three reasons Scoggins believes this will occur. 1) Las Vegas tourist traffic continues to grow. 2) Commercial development projects currently being built keep the local economy strong. These projects account for $14 billion dollars in development through 2010. Previous trends indicate that the employment for new large hotel casinos provides an even bigger boost to the local economy. 3) Retail sales and gaming remain strong and commercial construction has continued even as residential sales have lagged.