Sold to YOU, suckah
Meet 5240 Sunny Beach Lane, Las Vegas, Nevada, 89118. It’s a 1600 square foot, 2br/2ba house in the backblocks of Las Vegas with “vaulted ceilings, fireplace in greatroom, loft, plantation shutters and ceiling fans!”
In 2001, it sold for $135,000; the lucky buyers launched it in 2005 for $260,000, nearly doubling their money in just four years. And it’s now back on the market - for just ninety-nine thousand dollars.
It’s dropped sixty percent in six years - and it’s even 25% lower than the 2001 price(!). Or look at it this way - you could have a 2.0-litre Toyota Camry in Singapore, or you could have a 2.0-bedroom house in Las Vegas.
But 5240 Sunny Beach Lane has a lot of competition. Google has just added foreclosure listing to Google Maps; each and every little red dot on this Google map is a foreclosed house in Las Vegas.
And it’s no better elsewhere. Here’s Phoenix and Tucson. Florida has measles. California’s Central Valley is a mess. (There’s even a few in the posh enclaves of Sausalito and Tiburon.) Hawaii’s got a few scattered red dots as well.
Why would you be long housing in that market right now?
In related news: “US homes are set to lose $1.7 trillion in value during 2010”, sez Zillow. (They also estimate that, since the peak in house prices, homes across the USA have lost nine trillion dollars in value. Ow.)