LAS VEGAS (AP)— Analysts say the price of land in Las Vegas is rising at a “downright scary” pace as the housing market recovers.
A report from Home Builders Research shows prices rose to $250,000 to $275,000 per acre in February.
That’s a $100,000 increase from November and December, when developers were buying land for about $175,000 to $185,000 per acre.
Research firm president Dennis Smith predicts land prices will level off about mid-year and hold steady for a while, saying the economy is still too weak to sustain such rapid price increases.
The report, cited by the Las Vegas Sun, also shows growth in new homebuilding as the inventory of existing homes remains tight.
There were 510 new home sales in greater Las Vegas in February, up 65 percent year-over-year.