THE TRUTH ABOUT CURRENT LAS VEGAS HOME VALUES February 9, 2016
Today The Las Vegas Review Journal wrote a highly misleading article stating “Median single-family Las Vegas home price rises 9.5% in January. This is a pristine example of misleading information propagated by the media.
While the headline certainly is “Sexy” and garnishes attention. Unfortunately it’s rife with “half-truths”. First, understand that the LVRJ’s numbers are misleading since the numbers they receive from GLVAR (association of Realtors) includes NEW HOMES that HAPPEN to be listed on the MLS. In my opinion, this is incredibly misleading since even the article states “…existing single family home”. While they can’t directly be blamed for the information they received, it’s important to note that their numbers and claims are not accurate. Since new homes are SUBSTANTIALLY more expensive then resale homes, including new homes will always raise the median price.
More important is defining the claim of “9.5% increase in January”. The truth is that from January of 2015 to January of 2016 the (REAL) median price rose from $197,250 to $217,000 resulting in a 10% annual increase. My issue is twofold: First, the 9.5% increase insinuates a monthly increase (as in this JUST happened). The reality is that values went up 0.9% last month over December. But the POLARIZING truth is that home values PEAKED in June 2015 with a median price of $220,000. Consequently, we’re actually DOWN over 1% from where we were last June. It’s been 7 straight months BELOW the June high. Now this TRUTH, is INCREDIBLY different then this article suggests.
As always, take what you read with a grain of salt since few times will you truly receive an objective analysis when a media source is reliant upon advertising and their own internal agenda. Just to clarify, the market is performing JUST FINE in my opinion. I’m not predicting a troublesome market by any means. I’m simply illustrating the impact that clever headlines can have on the public’s opinion. I’m sure the reporter is simply doing her job and likely is unaware of the manipulated numbers she’s received. But hey, that’s what I’m here for…