When the housing market went bust about 11 years ago, Las Vegas became a national cautionary tale. Houses were being sold for 4, 5, even 10 times their value from just a few years earlier. Builders were putting houses up as fast as they could because they were easy to sell. Bank and mortgage brokers just waited on street corners giving away money to anyone with a pulse. Everyone bet all the chips that the market would keep going.
And then, like a gambler who overplayed his hand, everyone lost. Thousands of people were foreclosed on. Builders were stuck with houses they couldn't sell. Some neighborhoods became ghost towns.
Today, home prices are near those same high prices and lots of people are moving to Vegas.
So the question is, are we in another housing bubble that will cost everything? The short answer is no with a caution.
Although the home prices are back to 2006 levels, much of that increase is due to inflation and is natural.
Loans are harder to get, but banks are loaning again. Mostly, only people who are qualified are getting mortgages.
While there are people who have overextended themselves, most homebuyers can handle their mortgages.
Today's Vegas market is healthy and doing well. As long as everyone pays attention to the lessons of the past, this is a great time to buy and sell homes in Las Vegas.