Is The Las Vegas Housing Market Changing? In my opinion, YES it is changing! The only two things right now that are keeping our market in decent shape is: Demand and lack of inventory. With interest rates going up due to inflation as well as the FED increasing wholesale lending rates, the market will see a decrease in buyers. What does all of this mean? Several things will start to happen in the next few months…. first, we will lose buyers that can no longer afford a higher monthly payment. Second, we will see some sellers having to lower their sales price to keep up with a lack of demand for their homes. Adjustible rate loans are now making a come back: https://www.cnbc.com/video/2022/06/22/adjustable-rate-mortgage-demand-surges-as-interest-rates-jump-sharply.html That’s a temporary fix to a larger problem: Inflation!
What to Expect Next…
Several things I think we will see in the market….first up…short sales and foreclosures are returning to our market. Will our market crash like 2008? NO! It will not crash however I expect the market to remain high in pricing because of the lack of inventory. A normal buyers market for Las Vegas is having around 12,000 to 14,000. This includes homes, condos and town homes for sale at one time. Right now on the MLS for the Las Vegas Valley, we are seeing only 4,210 single family homes, 705 condos, and 509 town homes for a total of: 5,424 total units for sale now. We are still well below our normal buyers market for inventory.
I predict that short sales and forclosures will return to our market place. This will affect people that purchased their homes in the past 3 years. Some people will lose equity. When that starts to adjust, people that missed their payments because of COVID will be the first to short sale or face foreclosure. People that have not caught up on their payments will lose their home. Loan servicing companies are in the mind set of foreclosure not forbearance. If you have not made your loan payments in the past 2 years, you are eating away your equity. Loss of equity will not keep up with the artificial inflated home prices we see in our market. When you factor in missed payments, taxes, Realtor commissions and seller consessions, that equity will be gone. This will create more short sales and foreclosures. For more information about short sales visit my short sale page: https://lvrealty4sale.com/las-vegas-short-sales/
Is it Still a Great Time to Sell?
Yes! If I was in the market to sell my own home, I would get out of the market today! Pricing will start to adjust it’s just a matter of timing! When homes sit on the market more than 30 days if it’s in an affordable pricing point, that’s not a good thing! Pricing your home right the first time is key! Drawing in demand for your home and having multiple showings is the best way for success! This is not a market where sellers can over price their homes and get what they want. We are already 30-35% over priced.
When homes sit on the market without an offer, this will increase inventory and force sellers to lower their sales price. This will also help us some what correct this over priced market by 2023. Pricing will stay higher than normal due to a lack of inventory. If inventory numbers continue to rise, pricing will adjust for that. We will also see investors start to sell off large quantities of their homes as well to make up for any future losses. Here’s an article from CNBC about home pricing: https://www.cnbc.com/video/2022/06/21/high-home-prices-collide-with-high-mortgage-rates.html
Is it a Great Time to be a Buyer?
The short sweet answer is NO! 99% of my buyers I take to new home construction. Why? I refuse to play the over bidding nonsense on the MLS. I think that is beyond absurd to pay over list price. Do you over pay for milk? Do you over pay for other items? Most of the time, no you do not. So why do it with housing? Over paying for a home is not a smart move. The reason I take my buyers to new home construction is that the homes MUST appraise for the contracted value of the builders cannot sell the home. It’s really that simple! If you cannot afford a home for the next 3-5 years, DO NOT BUY A HOME! Yes, our rental market is worse than our resale market, but buying a home you cannot afford in the next few years as inflation rises will leave you without a home!
Plan out your finances and give me a call first before you think about buying a home. Let’s see what your real estate goals are first. You can reach me at: 702-768-2552 or send me an email here on my website.
In Conclusion….Is The Las Vegas Housing Market Changing? Market Update June 2022
Is The Las Vegas Housing Market Changing? Of course it is. It is always changing and adapting to our economy and demand for housing. I do not see doom and gloom but I do see a correction coming and I have been warning people of this for a long time now. Real estate is a giant cycle of events. Doing this now for 18 years, I see patterns, I see trends and I see reality. What does that mean? It means that you have to plan out your choices, and your actions. Buying when you can afford it and selling when you can make the most money. Hiring me to help you navigate these choices is your best course of action. Let’s have that chat about the housing market and where you fit into all of this!