Statistics Show That There Is No Housing Bubble In Las Vegas

Las Vegas home prices, like many parts of the country, have continued to rise strongly. There has been widespread media coverage on the possibility of a housing market bust. However there have not been many statistics to support his theory.

In fact the statistics reveal that there is very little danger of a housing bubble bust. In fact the latest report released by the Research Division of the National Association of Realtors shows that the local housing market is in excellent shape.

It also shows that there is potential for significant housing equity gains. This is potentially huge for homebuyers who plan to remain in their houses for the long run.

However rumors are created fro a reason. The prices in Vegas have risen faster than consumer's incomes; this makes the ration of price-to-income above the historical norm.

Because of this measure, critics and pessimists say there is a housing market bubble. This ration is misleading however. The mortgage servicing is a more relevant way to judge how the market is doing.

When you look at mortgages compared to incomes, there is only a slight increase from those numbers posted in previous years.

This implies that there is no widespread financial overstretching to purchase homes in the Las Vegas region.