The Nevada housing market remains at or near the top of national rankings. While some of these national comparisons are positive, others carry more negative connotations. There is no question that the residential market in the Silver State has experienced a roller-coaster ride unlike any other market in the country. Looking back about a decade, home prices were starting their feverish pace of expansion as strong population and employment growth were driving incremental demand for homes, and investor activity provided even more fuel for the fire. By 2006, residential prices had reached their peak and the unraveling of value commenced. Today, Nevada again leads the nation in home price appreciation; but stubbornly high rates of mortgage delinquency, uncertainty created by government intervention, and potential divestment by residential property investors suggest current pricing trends may be short lived.

By the time the national economic recession started in December 2007, Nevada home prices were sliding downward at a rapid clip, with local economic conditions contributing to a weaker demand profile. Additionally, previous speculators and underwater homeowners were now exiting the market as quickly as they entered. The excess capacity in the supply-side of the equation raised concerns about the long-term stability of the market and how the balance between supply and demand might find a new equilibrium.

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