Las Vegas, We Have a Problem
Today we’re going to talk about housing prices in Las Vegas and some troubling indicators starting to pile up. First, an interesting batch of mail after yesterday’s Rundown:
“When NAFTA was implemented I wanted to leave the country only my wife wouldn’t hear of it.”
All these years later, you think you made the right choice to stay?
Another letter: “We all know how crooked Hillary is. Can you explain how Warren Buffett can support such an uber corrupt candidate for President? Not a single publication will ask this simple question.”
We’d venture Buffett supports candidates based on his own self-interest. Just like anyone else. Also, we’re curious if this was a fresh email or if it was lost in transit from November 2016.
Finally, one more letter on marijuana: “The honest debate is actually two separate debates. 1. CBD for sick people. 2. THC for everyone. Topic 1 should be approved quickly. Topic 2 would be a real debate.”
Agree. The medical applications of CBD are settled science. When we say “marijuana is medicine,” we’re talking about CBD not THC. Well said, dear reader.
Send your questions and opinions to, TheRundownFeedback@SevenFigurePublishing.com.
Your Rundown for Wednesday, August 29, 2018…
Debt Spikes and Housing In Las Vegas
Hopefully it’s a coincidence, but yesterday The Las Vegas Review-Journal reported Nevada had the “highest year-over-year growth in credit card debt in the U.S.”
We’re talking 9.3% growth, almost 50% more than the national average of 6.6% growth.
Personal bankruptcy filings in Nevada are up. Yes, Nevada and Clark County specifically have fast growing populations and strong job markets.
But this is a troubling trend. Especially when you consider…
ALSO yesterday, The Seattle Times reported Seattle has been “dethroned” as the nation’s hottest housing market of the last two years by, go ahead, guess.
Yes, Las Vegas. This is the part we’re hoping is a coincidence.
Personal debt in Nevada is racing higher. In the midst of a red hot housing market.
Ten years ago at this time, Las Vegas area home prices were down 60% from their peak.
Today, past troubles are a distant memory and the sky’s the limit.
Last month Forbes wrote that, based on the Case-Shiller Home Price Index, Las Vegas’s 12.6% average home price increase May 2017 to May 2018 was the highest of any major metro area.
The Case-Shiller housing “Momentum” reading for Las Vegas, or the rate of home price appreciation, was 5.7%.
San Francisco clocked in at 5.0%. No other metro in the 20-city index was above 2.1%.
Question is – how out of control is Las Vegas, and is it time to worry?
Depends. Bloomberg, earlier this week, reported June prices in the 20-city index have leveled off due to rising mortgage rates and “affordability constraints.”
Existing home sales fell to a two-year low in July.
It would appear the nuttiness is localized. For now.
Las Vegas, San Francisco, Seattle, the usual suspects.
Still, Nevada is worth watching. The market’s teetering on the edge, and the spike in personal debt and bankruptcy could once again mean buyers are in over their heads.
Tell us, what does housing look like in your area right now?
Write to us at, TheRundownFeedback@SevenFigurePublishing.com.
Now, turning to the markets this morning…
Market Rundown for Wed. August 29, 2018
S&P 500 futures are up 2.25 at 2,901.
The DJIA closed yesterday above 26,000. Futures are up 9.00 this morning at 26,094.
Three years ago this coming week, the DJIA sat at 16,135.
Oil’s up this morning by $0.54 at $69.07.
Gold’s off $4.30 at $1,210.
Bitcoin goes for $7,104.
Have a great day.