Real Estate has had quite a roller coaster ride this past decade in Las Vegas.
The latest info for the ups and downs of the market indicates that the market will be ticking upward.
The inventory in Jan. has gone down 10% to a 7 day supply or 3300 SFR's.
This low has not been seen since the historical lows of 2004 which lead to a 50% increase in prices
across the board that took place 2005; That, plus very poor lending practices, lead to the bubble and crash of 2008.
Las Vegas is poised to have another increase in home values this summer.
How will 2013 price increase be different from 2005?
Today buyers are coming into Las Vegas with cash, 60%+ of the deals that are currently closing are with cash buyers.
We are again seeing multiple bidding battles between buyers. If Las Vegas does not replenish its inventory like what
traditionally happens in Jan. & Feb. then the low supply and high demand will correct the market prices. The big
question is will we have another bubble if the market goes up 30-40%? I surmise that the answer is no. This is based
on the type and the financial strength of todays buyers. For the most part the investors are running cash positive rental
investiments that most of them have paid cash for. This is staunchly different from the 2005 investors who borrowed
most of their funds, had high mortgages and were upside down on their rental. In those cases the investor bailed
on their investment.
Overall prognosis - this is a good time to step up and buy something (if you can).
Phil Scheinman
Realty One
Search www.PhilScheinman.com
