Nevada homes not just were the most overvalued in the country at the peak of the real estate bubble last years, but prices are amongst the most inflated now, brand-new information reveal.
Homes statewide are 15 percent misestimated, tied for highest in the country with North Dakota and Hawaii, according to analysts with Fitch Ratings.
Reno homes are 20 percent misestimated; Las Vegas houses, 14 percent.
Rhode Island is at the bottom of the pack among the states and Washington, D.C., with houses 14 percent undervalued.
At the peak of the 2000s, Nevada homes were 48 percent misestimated, the greatest in the nation. Florida– another state associated with the boom and bust– was 2nd greatest at 43 percent.
Las Vegas homes were 49 percent misestimated at the time; Reno, 45 percent.
Every state was inflated at the peak of the bubble, although Oklahoma was the least bloated, with houses just 5 percent miscalculated, Fitch says.
The bond-ratings company today released an interactive map revealing its findings.
In late March, Fitch said Las Vegas was the seventh-most overvalued real estate market in the nation, as investors raised costs amid restricted supply and a slow economy.
Housing need in Southern Nevada– in addition to other boom-and-bust areas including Miami and Phoenix– has actually been reinforced by outside buyers. Such markets also have high rates of undersea property owners, limiting the variety of homes for sale, Fitch reported.
Small changes in demand have actually had “an outsized impact on cost” in these locations, and growth is “expected to be more delicate than true demand-based expansion,” Fitch experts wrote.
Investors swarmed Las Vegas for inexpensive houses after the economy broke down, often turning them into rentals. They helped the marketplace recover, pushing up rates at among the fastest rates nationally and raising fears of another bubble.
But the purchasers caused Las Vegas and other markets to be “dependent on external demand sources,” Fitch said in March.