Salaries Will Determine If The Market Will Stabalize Or Not

According to Tony Silva of Realty One Group, things are not looking good for the Las Vegas real estate market. Silva says that it's not so much that things aren't looking good as much as it's time for a change.

Silva and others like him are worried that when Las Vegas home prices are no longer such a good deal, what is Las Vegas going to do to ensure that the housing market keeps from slipping into a deeper rut than it is already in.

Local companies are going to have to compete for white-collar workers because they aren't set up to compete or steal people from the Los Angeles job market.

Silva calls mention to a stat that was released by the Greater Las Vegas Association of Realtors which reported that in Las Vegas the total dollar value for home sales in July was $744.8 million which is down 23.5 percent from the previous month and down 35.7 percent from a year ago.

According to Silva, "I think for the market to stabilize her in Vegas we're going to have to see prices drop 8.5 percent this year. Everybody forgets about salaries. You have to see a 4 percent increase in salaries with an 8.5 percent decrease in prices for the economy to balance itself out".

Critics of Silva say that there is nothing to worry about, that the Las Vegas work force will accommodate and recruit enough people to sustain the local market and economy.