Is Vegas Price Boom Peaking?

The price boom in the Las Vegas metropolitan area could be coming to an end in view of the flattening of the price appreciation curve and a decline in existing-home sales, according to ForeclosureS.com, a Fair Oaks, Calif.-based investment advisory firm.The median list price in Clark County, Nev., was $349,000 in August, the same as in July, but the actual median sales price was $309,000, said Alexis McGee, president of ForeclosureS.com. "The situation in Las Vegas is exacerbated by the high percentage of home purchases by speculators," Ms. McGee said. "Normally, foreclosure is a lagging indicator of financial distress in a household, but speculators often have negative cash flows in their properties. When price appreciation slows or stops they must run for cover, and now may have more difficulty selling quickly to cut their losses." The company can be found online at http://www.foreclosures.com.