On Tuesday, the Las Vegas Review Journal had this on their front page.
After 19 consecutive months of increases, we had 1 month with a 1% drop in the Median price.
Should we prepare ourselves for the next Crash?
Should Home Owners Sell Now?
What does it Really mean?
First of all, the Median Price means the middle.
Not the Average.
This is not a trend.
If you look close at the graph on the right, you can see the trends.
And within the trend you can see little up and down movements.
So unless we see this same graph in three months and it continues downward,
I don't think we have much to worry about.
The next question I would ask is why did it go down?
If you think back we posted a previous blog about how Interest Rates had gone up a full 1 %
and how that would affect Buyers and how much they qualified for.
Maybe it's something as easy as people were focusing on getting the kids ready for school.
Property Values have been on the rise for over a year and a half.
And more recently they have been rising rapidly.
I think Buyers are taking a step back and saying, "Whoa, Not So Fast!"
Investors are slowly backing off of Las Vegas because as Prices go up,
and if rents stay the same, then their profit margins go down.
This is all to be expected in a normal Real Estate Market.
The market, when not being manipulated, self adjust.
Before we all get in a panic, let's just wait and see what happens.
No comments:
Post a Comment