The State Of The Las Vegas Real Estate Market (From The Way I See It)
"So how's the market?"
This is a question that myself, like probably every other real estate agent, ever, get all the time. Seriously, like all the time. I can be at a dinner party (pre-Covid) with some friends and I'll be asked this question. I can be walking out of a home for sale with buyers and a nosy-neighbor will pop- by and ask. I've been overheard on the phone by people at the gas pump, granted I am SUPER loud on the phone. And people will come up and ask me, "so how's the market?"
Right now the Las Vegas market is on fire. That's not a pun, though as I write this it is well over 100 degrees outside.
In January 2020 our median sales price was hovering around $300,000. Currently that number is at $325,000...and rising. That's nearly a 10% growth in SIX months four of which have been during the pandemic.
"So what's happening?"
Well for starters interest rates are at an all time low. Even I had to take advantage of that. My fiancée and I just purchased a brand new home (new construction - so actually brand new) and locked in our interest rate at 2.75%! We will never have to refinance that, ever...unless we want to do a cash out refinance later down the line. Though, that is a bit different..
On top of that inventory as well is at an all time low. It seems when a home below $350,000 hits the market with the right marketing and access it is sold in a matter of days. There are so few homes for sale, that we are once again in a STRONG sellers market.
As a result of the low interest rates, there is a huge demand for buyers to buy, but the inventory being so low is driving prices up at an almost unprecedented rate.
This leads to the next question or more-so should I say comment I hear all the time:
"I want to buy but I'll just wait until the next crash like 2008"
When I am asked "when should I buy?" I always reply with "you should buy when you can." And that still applies here. As of right now there are no signs in the local Las Vegas market that the Real Estate market will crash, no less, crash like it did 10-12 years ago.
Let's dissect that statement for quick moment. The 2008 Housing Crisis which led to The Great Recession was caused by the housing market collapse.
And in 3 of the last 5 recessions housing prices went up...they appreciated.
Of the other two one was of course the 2008 Recession, and the other one housing prices dipped barely below 2%.
Again there's no signs of the housing market slowing down or dipping...at least not now. Of course, everything is cyclical so will prices slow down...probably. Will prices depreciate over time...possible. Will they nose dive and crash like they did back in 2008...I don't think so. What I think is likely to happen is we will see interest rates start climbing back up as people return to work, and as a result of the spike in interest rates we will see prices flatten for a little bit.
Think about it this way if prices continue to go up and up, and eventually take a small dip. They could drop in price and then flatten out at HIGHER than they are priced right now.
I'll remain consistent; when should you buy? When you can. And if that's now then let's go!
Take advantage of the low interest rates. Hire a professional agent (like myself) who has experience navigating through a competitive market.
If prices appreciate even more throughout the next year and into 2021 when we should be recovering (both physically and economically) from COVID, and interest rates rise...the home you're looking at in July 2020, might not be in your budget in July 2021.
Want to discuss this in more detail? You know how to reach me!
Opinion by Jason Schifrin | Platinum RE Professionals | S.0175840