Bubblemeter.com recently posted a chart showing that Las Vegas home prices are still dropping. The explosion of the housing bubble in 2007 can clearly be seen on the graph—prices reached their peak in 2006 and plummeted a year later. At its peak, the average price of a home here was roughly $350,000 (adjusted for inflation); that number has nose-dived to roughly just $130,000. Foreclosures in this city are at an all time high and in some cases property values have fallen as much as 60%!
This drop in prices explains why investors have flocked to Sin City. Investors looking to make a profit when the market rebounds purchase the majority of homes here— using cash of course. Although the short- term outlook seems grim, renting out foreclosed properties and reselling in a few years can be a major money- maker.
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