Nevada had 3rd-highest home price hike in past decade, report says
Nevada saw the third-biggest percentage increase in home prices over the past decade, trailing only Idaho and Florida, according to a recent report.
According to historical data compiled by Life and My Finances, an online financial help publication, the average home price in Nevada rose from $159,464 in 2013 to $426,782 currently — an increase of 167 percent.
In Idaho, which led the country, the average price for a home increased 184 percent, from $153,266 in 2013 to $435,726 now, according to the report, which drew data from the Federal Reserve Bank of St. Louis, the National Association of Realtors, Redfin and Zillow.
Florida, which came in second, saw home values increase 176 percent, from $144,184 to $398,378 currently.
According to the report, a number of issues have played into the jump in home prices in certain states, starting in 2013 when the Federal Reserve began tapering its purchase of government bonds and mortgage-backed securities and interest rates rose close to 4 percent.
There then followed a boom in foreign buyers purchasing properties in cities such as Los Angeles, New York and Miami that lifted home prices in those areas and nationally in 2013-14. Later, there was a refinancing frenzy caused by the Fed cutting interest rates in 2019, and then came the COVID-19 pandemic, which set the U.S. housing market on a roller coaster ride it is still trying to get off.
Most recently, the Fed has been raising interest rates in an effort to tame inflation, which seems to be having some effect. The central bank’s rate hikes have coincided with a steady drop in consumer inflation, from a peak of 9.1 percent last June to 4 percent as of May.
Derek Sall, the creator of Life and My Finances, said if inflation continues to fall, the housing market will respond accordingly.
“Mortgage rates should follow suit. This will increase demand on an already limited housing supply, which means house prices are set to jump yet again.”
Contact Patrick Blennerhassett at pblennerhassett@reviewjournal.com or 702-348-3967.
