Here's the short answer to that question: Maybe.
Home prices in the United States spiked a remarkable 12.2% in the year long period ending May, 2013. That gain is the largest one-year post since 2006. In fact, for the first time since the housing collapse, two cities posted new record high median home prices: Dallas and Denver. In Las Vegas, the gains were even more incredible. Las Vegas home prices rose 23.3% in twelve months, although prices still remain well below the highs of 2006.
So what does all this mean for the average home buyer or the real estate investor? Are prices going to continue to sky rocket? Are we creating another real estate bubble here in Las Vegas? Are we watching the beginnings of "Bubble 2014"?
Maybe. But I don't think we've reached the "danger zone" just yet. Many economists believe that rising mortgage rates (likely to continue to rise as the Fed begins to taper off quantitative easing) and rising supply levels will hold back the meteoric rise of real estate values and start to restore balance to the Las Vegas real estate market in the next year. I think that this is a definite possibility. IF these things occur, then I believe prices will stabilize in the Las Vegas market and we will likely avoid another real estate crash. IF, however, supply levels in Las Vegas do not rise quickly enough to keep up with demand, or if mortgage rates rise only marginally and do not serve as a deterrent, then it is likely that we will see prices continue to rise sharply in the Las Vegas real estate market. If that happens, we may very well find ourselves facing another bubble. Bubble 2014 perhaps.
Only time will tell.
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