Las Vegas Housing Market Update September 2020 — welcome to fabulous las vegas neon sign

Las Vegas Home Prices Continue to Rise With Lower Sales Recorded- The Las Vegas real estate market continues to see pricing rise as well as demand for homes. Sales did fall from 2019 numbers due to the lack of inventory. Supply of homes did drop to around 2.4 months compared to a supply of 3.9 months in August of 2019.

Currently, the average sales price is at $335,000.00 up from $330,000.00 in July. Demand is still very strong from California buyers as well as out of state buyers. Local buyers are cashing out equity and upgrading to bigger homes. Several of my clients have cashed out their smaller homes that the bought 5-10 years ago to buy a bigger home that they now can afford due to the amounts of equity they have in their smaller home. In addition, I am also seeing more first time home buyers hitting the market. With interest rates still under 3%, renters are now able to get a great mortgage deal and save a lot of money on their new mortgage payment.

Inventory and Demand:

Las Vegas Home Prices Continue to Rise With Lower Sales Recorded

Inventory still remains very low and is a concern for me. I am getting a lot of questions from buyers as to possible foreclosures hitting the market and having some type of pricing correction. Here is my response to this question. 1) Inventory is very low. 2) Demand is still very high. 3) If the supply is low and demand is high, this means that pricing will continue to go up. 4) If pricing comes down, it’s because demand is no longer there. It also means that our market would need to add another 5,000 to 10,000 units for sale in a short period of time. In 16 years of doing this business, I have NEVER seen that happen. 5) The state of Nevada still has an anti-foreclosure law on the books right now which means no bank or servicer can foreclose on a home.

Foreclsoure Process:

The foreclosure process in Nevada could take at least 6-8 months or longer from the period of when the State of Nevada allows foreclosures again. This means that banks and servicers will have to work with the home owner to avoid foreclosure. 6) Most people will have equity in their homes so why would you not sell your home and cash out your equity? This makes no sense to me. You would give up your home to foreclosure? The only people that would face foreclosure are the people that just recently bought a home within the past year.

In conclusion, I am not saying that the market will never come back down. I welcome some type of pricing correction to happen in the future. I cannot predict the future but I can use facts and data to see that the Las Vegas real estate market right now is strong and is helping people upgrade to new homes and it’s relocating a lot of people from other states to Las Vegas. When you buy a home, you are buying a place to live in. You are not buying a home as an investment. Investors buy into real estate with cash and then do not have to worry about a mortgage payment. They are able to make money on that home as an investment over the long term. As a buyer for a home, you are buying a home for the tax benefits, the pride of ownership as well as future equity results not short term gains.

Information Links:

Check out my foreclosure information page if you need help to avoid foreclosure. Currently, there are plenty of government programs to help you. Here is the link to that page: https://lvrealty4sale.com/how-to-avoid-foreclosure-in-las-vegas/

If you are a buyer looking to purchase a new home, check out my communities page here: https://lvrealty4sale.com/communitiy-pages-in-las-vegas-and-summerlin/

Here is the Fox 5 news article about our current market conditions: https://www.fox5vegas.com/coronavirus/southern-nevada-home-prices-set-all-time-record-though-fewer-homes-sold/article_98563dfe-f29b-11ea-b857-07ebdd3a490d.html?utm_source=FOX5%20Vegnkas&utm_medium=referral&utm_campaign=Breaking%20News

With everything that is going on right now I wanted to address a topic that keeps coming up: Las Vegas Short Sales and Foreclosures. I am hearing from people and seeing news reports that missed loan payments are on the rise. What does that mean for the housing market? What does this mean overall? First off, try not to panic. Second, there is GOOD NEWS! Most people that bought their homes within the past 5 years have nothing to worry about at this time. Unless you bought your home in the past year, most people in Las Vegas have equity in their homes and can sell now and make a nice profit. Demand for homes and a small inventory will help us get out of this Covid mess. This is not 2008.

Selling your home, cashing out your equity:

Instead of facing foreclosure due to a lost job, try selling your home or ask me to do a Comparative Market Analysis FREE OF CHARGE to see what your home is currently worth. You may have some equity in your home which means you can cash out now, find temporary housing until you get back to normal. Once you find a new job in the same field you were in, more than likely you can get a new home as long as your credit is still good. Remember, you will still need to qualify for a new home.

No equity, do I need to short sale my home?

If you are under water in your current home, you can short sale your home. This means that the lender is willing to allow you to sell your home under it’s current value. Example: when you bought your home for $400,000.00 1 year ago and let’s say you have lost money on it and it’s only worth $350,000.00 the “short” amount is $50,000.00. This short amount is considered a capitol gain and you may have tax consequences. Please seek a tax specialist or CPA to respond to that question.

In Nevada, you can be foreclosed upon after a NOD (Notice of Default) has been filed and you have missed several payments. Usually 3 missed payments will trigger the NOD to be filled. Those payments do not have to be in a row, they can be at any time.

In my experience of doing short sales since 2006, most servicers and banks will not foreclose on you right away. In the state of Nevada there is a 90 day “cool down period” once the servicer or bank files an NOD against your home. Then, they have to either try and auction the home or it reverts back to them as an REO (Real Estate Owned property). The entire process can take at least 6-8 months if not longer from the first missed payment. Keep in mind, each person’s situation is different and time frames can be different. This is the average time frame I have seen when I deal with Las Vegas Short Sales and Foreclosures.

Our Current Housing Market:

As of this post August 12, 2020, our Las Vegas real estate housing market is strong. We are in a sellers market. There is huge demand from buyers outside of Nevada. Invetory is very low with a 2.5 month supply of homes. (Nationwide we are seeing a massive housing inventory shortage.) A normal buyers market would be over 4 months of supply.

Interest rates are at an all time low which is also driving demand from current renters that are tired of renting and want the benefits of owning their own home. Interest rates should remain low until 2022 according to the FED. New home construction is also on the rise as well. Most home builders will quote you a 6-8 month build out from dirt for a new home. This time frame is based on a labor shortage.

Las Vegas Short Sales and Foreclosures are less than 3% of the market right now which is good news, proving our housing market is stable.

Experience Matters!

As a Las Vegas Short Sales and Foreclosure Specialist, I have shorted over $550,000,000.00 dollars since 2006. I have a 99% success rate in dealing with all of my short sales. I was one of the first Realtors here in Las Vegas to start doing short sales. I have also taught other Realtors in Las Vegas how to complete them and correctly manage them for their clients.

It is my job to make sure that you are getting the best resolution for your situation. In all of my cases, I make sure that you are no longer responsible for the outstanding debt and that you get a “Full Release Letter” from the bank of servicer making sure you can walk away and start over. Starting over with a clear plan of action is what I strive for with all of my clients. Call me today at: 702-768-2552 for more information on completing a short sale.

Be sure to check out my short sale page: https://lvrealty4sale.com/las-vegas-short-sales/