Las Vegas has expert worried. Reason large number of investor owned homes. Las Vegas has around 35-40 percent investor owned homes which is much above the national average of 23 percent.

The reason is not far to seek. The near 20 percent appreciation rates over the last two years has been attracting investors and second-home owners. So what IS the forecast for Las Vegas?

Well, as usual there are no firm opinions or verdicts.

Las Vegas has a strong economy, the job market is growing, jobs are being created everyday, the entertainment and tourism industry the backbone of the Las Vegas economy is going strong, new immigrants are moving into the city everyday to take up the new jobs, which naturally is increasing the prices of housing. So, there is really no need to worry that the bottom is going to fall out of the real estate market according to one school of thought.

The other opinion is to be cautious as the market seems to be overheated and sustaining it would be tough. Investors when they see the prices going down will simply offload their homes and flee the market which can put the real estate market into a tailspin.

This entry was posted on Saturday, January 14th, 2006 at 2:06 pm and is filed under News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.