LETTER: Home prices and home equity
I read your Saturday editorial, “Lower lending standards.” I spoke with the mayor of Newport Beach, California, last year when he was in town campaigning for Las Vegas mayoral candidate Victoria Seaman and asked him to defend the fact that the average price for a house in his city is more than $3 million. To my surprise, he defended it and said his job is to protect the investment of homeowners by ensuring property values rise creating a quality of life in his city that attracts people, thus driving up values. He also said that if someone could not afford to live in his city, they should not live there.
After some thought, I fully agree with him. Capitalism is a wonderful thing, and I trust it way more to set home values through demand driven by consumers than just continuing to release land for development, as the standard answer to solve all problems. There are many cheaper places to live than Las Vegas. But your quality of life would be lower due to higher taxes and a boring life. Make your choice on what you can afford and budget accordingly.
Meanwhile, fellow homeowners in Las Vegas should enjoy the appreciating values that will enhance our retirement nest eggs. Choices, choices.
