The wave that was Nevada real estate values has crested and now homebuyers and sellers may have to spend a little bit of time in the trough.
What did we think would happen when tract homes selling for $200,000 two years ago hit $400,000? That somehow the market would magically lose all sense and continue to rocket upwards without rhyme or reason?
At some point people were going to get wise to the deal and start looking a little bit closer at the price of a house in Douglas County and decide that maybe it was better to wait out the high market.
As always the ones hurt most are those who overpaid for a home, thinking they would be able to turn it around for a profit within a couple of years. It is the last to purchase who find themselves paying a mortgage for a $500,000 home that is only worth $400,000. As long as they are willing to stick around for awhile, they'll be fine.
Compared to some periods in Nevada's history, this is only a minor pothole. Look out into the desert where fortunes were sought only to leave dilapidated ghost towns and tailing piles in their wake.
This state has seen more booms and busts than any other. Our economy has risen and fallen through history like the basin and range that covers most of the state.
This most recent trend is only a hiccup in a market that has consistently increased in value. Nevada real estate is still a great investment.
