Tuesday, August 28, 2007

Over-valued real estate #2 - Las Vegas

Over the long run, homeowners in Sin City could expect their property to appreciate by about 0.7 percent a quarter, or roughly 2.8 percent a year. However, property prices soared after 2000. Over five years, prices increased by 96 percent.

How far must prices in Las Vegas fall before they return to their long run trend growth -45 percent.

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