Many people are beginning to panic that Las Vegas home prices are as high as they were in 2006. While home prices are way up since the rock bottom median price $118,000 after the bubble burst, they are still not at the level of peak of the last housing bubble.
If you adjust the 2006 median home price for inflation that home would be $390,000. Today's median home price is just $300,000. Even the unadjusted median price of $318,000 in 2006 is higher than today's median price.
Much of the country has returned to or surpassed the pre-crash home price highs, but Las Vegas is still behind in that curve.
Builders sold around 10,700 homes last year, a number that is only 3,900 more than 2011 after the crash. That number pales in comparison to the 2005 sales number 39,000!
There is a fear and memory of the last housing bubble that took down the economy and almost plunged the world into a depression. This fear leads to cautiousness about building too much inventory or allowing prices to skyrocket.
The growth at this time doesn't appear to be caused by lax (if not unscrupulous) lending, massive construction, and rampant house-flipping. This growth appears to be due to legitimate population growth and demand. The low supply of houses combined with a massive generation, the Millennials, coming into their own are creating a healthy growth in home prices.
While home prices have jumped and will continue to climb, there is not reason to think that this time around the bottom will drop out and millions will have homes foreclosed.