With the establishment of Sightline Acquisition Corporation Kirk Sanford ventured into the exciting world of Las Vegas real estate. If Las Vegas is nothing else, it is surely exciting. For instance, despite an increase in the number of home sales, prices have continued to decline in the city known for its casinos and legal gambling. The decline is actually officially the steepest in the nation, just passing Phoenix as the city with the fastest home price decline.
The statistics read like this: Since August 2006 which was the peak in home prices, the cost of a home in Las Vegas fell 54.3%. In June 2006 Phoenix reached its own home-price peak, and has since slid down by 53.9%, just a tad less than in Las Vegas.
In an apparent contradiction, despite the price declines numbers of home sales continue to increase. July marked the eleventh month in a row in which home sales increased, with a total of 29% increase since last year.
The discrepancy is easily explained: Most of the home sales are foreclosures, which sell at discounts. Two thirds of Nevada’s mortgage holders actually owe more on their homes than their homes are worth, leading them to foreclosure. Conclusion: More sales, cheaper prices.