About 15 years ago, Las Vegas’ housing market was going nuts.
Builders blanketed the valley with subdivisions, buyers flipped houses with ease, property values soared, and developers wanted to plant a forest of a high-rises.
There was talk the market was in a bubble, but not everyone bought it.
“Frankly, the vaunted housing bubble is just like Y2K — a scary proposition put forth by people who do not understand the real estate fundamentals of this market,” an analyst said in fall 2005.
As we know now, Las Vegas’ market was in a bubble — arguably the most bloated in America — and when it burst, the economy crashed with it.
Southern Nevada’s housing market is accelerating today with rapid sales and record prices, and industry sources say the market is moving at the fastest pace in a long time. So, are we floating in another bubble?
Booming for different reasons
As real estate pros point out, there are key differences between today’s hot streak and the doomed frenzy of a decade and a half ago.
Back then, the market was soaring thanks to easy money, as practically anyone could get a loan to buy a house, if not several of them, with lenders frequently opening the vaults without verifying borrowers’ income.
Today, the market is soaring thanks to cheap money, as rock-bottom mortgage rates have let people lock in lower monthly payments and stretch their budgets.
Houses are being flooded with offers, often within days of hitting the market, and routinely…