The roller coaster that was the Las Vegas housing market during the 2004 year has stabilized during 2005. This includes housing supply and prices. During the spring of 2004, housing inventory for both new and resale homes was very tight. As an example, there were only 1,400 existing homes available for sale in the Las Vegas housing market during February of 2004. During September, 2004 this number of available resale homes had increased to 15,000. This equates to a five or six month supply of resale homes available as compared to less than a month’s supply in the spring of 2004.

The year 2004 was again a record-setting year in the Las Vegas housing market! New home sales increased in 2004 by 15.9 percent to 29,248. Existing homes sold in the Las Vegas housing market during 2004 totaled 64,168 which was an increase of 28.9 percent over 2003.

"The Las Vegas Valley remains one of the nation's hottest housing markets, even as land prices creep to $200,000 an acre and new home prices jump 8 percent a year" according to Dennis Smith, President of Home Builders Research.

He believes that the Las Vegas housing market will remain strong and housing prices will continue to rise as long as Las Vegas maintains positive employment numbers and large numbers of home buyers continue moving to Las Vegas. During 2005, there are over 7,200 people moving to Las Vegas each month. He states, "show me another market in the United States with under 2 million population and five builders selling 1,200 homes".

A huge contributing factor to the strong Las Vegas housing market is the strong job market. In 2004 Las Vegas added 44,680 new jobs. The unemployment rate in Las Vegas during 2004 was 3.5%.

Real estate brokers have been hoping that land prices would stabilize the Las Vegas housing market with the release of 27,000 acres under the Southern Nevada Public Land Management Act. Richard Lee, public relations director for First American Title has said that only a major downturn in the economy would cause land prices to drop.

Nationally, housing remains one of the strongest parts of the U.S. economy; sales of existing homes reached a record of 5.57 million in 2002. New home sales are also strong according to the U.S. Commerce Department. New home sales rose nationally by 1.7 percent to 1.028 million in 2002.

The average home in the Las Vegas housing market sells in 45 days so it's not surprising that John Burns Real Estate Consulting has advised to "Place your bet in the Las Vegas (housing market)". His reasons are the strong job growth in Las Vegas and the phenomenal Las Vegas housing market homeownership demographics with the large influx of young adults in the last decade. Source: RealEstateConsulting.com

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