Nevada’s recovery continues to press forward, though the underlying dynamics continue to pose significant questions regarding the sustainability of economic growth. Home prices have started to stabilize, but new inventory continues to come online. New jobs continue to be created, yet personal income has failed to act in kind. Taxable retail sales are growing at a slower pace; however, much of the gains are coming from narrow segments of the economy. The uncertainty arising from these trends continues to plague an economy that has shown a remarkable recovery since the Great Recession but which remains well below peak levels in nearly every major economic performance indicator.

Home prices compared to the previous year were still up as of the fourth quarter of 2013 (latest available data), with the housing price index up 24.3 percent from a year ago; however, price increases have slowed considerably. Since August 2013, median existing home prices in Nevada increased by only 0.9 percent to $175,000. Sales volume of existing homes stalled, with 3,761 closings reported during the month (down 21.9 percent from February 2013). Approximately 1 in 5 existing home sales were distressed in February, one of the lowest rates since the onset of the housing crisis.

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