Prices Shooting Up Amidst Health Scare

 The Las Vegas Real Estate Market is Changing Quickly. 

The graphs below get sent to out weekly and this week I was Shocked to see Prices Shoot Up. 

Even Amidst the Coronavirus "scare",  

Buyers are Pushing Home Prices to New Highs. 

Why? 

Interest Rates are at All Time Lows 

Falling Inventory Levels 

The Vegas Economy is Strong 

The Seasonal Spring Surge. 

The Big question is, 

Will the Coronavirus  have an affect on our Market? 

I'm sure it will.  To what degree remains to be seen. 

In the meanwhile, Buyers should take advantage of Low Rates  

and Potential Lowering of Prices due to Economic Uncertainty  

caused by the Health Scare.

Looking Back at 2019 and Forward to 2020

As Always, the Big Question is,

"What's going on with the Real Estate Market?"

Before we Look ahead to 2020, let's take a look at how we did in 2019.

Or as I joke in saying, "A 2020 Hind-Site"  

 

For the Year 2019, we had a Median of 6% and an Average of 7 % Equity Growth.

Not Bad... FYI, Condos did even better than that.

 In 2018 Equity Growth was around 9% and back in 2017 it was over 12%.

So the Growth has been good but is now slowing down.

Now let's look ahead to 2020

 I could write about all the Construction Projects, Casino Resorts 

and Conventions feeding our Las Vegas Economy, but we all know about all of that.

But even with all that's going on, I don't see Home Values Going up more than 5-6%

Las Vegas wages will only go up so much, creating an Affordability Ceiling,

which is getting close to being Maxed Out.

What will most likely Push the Market is the Rising Rents.

There have been several articles in the LVRJ about how Large Corporations 

are Investing in Apartments because of the High Demand and Profits.

Las Vegas Home Ownership Rate is around 58% 

Down from a high of 63% in 2005 but up from the low of 50% after the crash.

These numbers are well below the National Average of 65%

People need to Stop wasting Money Renting and Invest in Their Future.

What is Your Money Worth?

The Newest Biggest Thing in Real Estate is iBuyers.

What is an iBuyer?

Zillow, Opendoor and Offerpad are iBuyers.

They are Tech Giant Corporations that are claiming that they 

are a better option than using a local Realtor.

They claim they are simplifying the Selling process.

And if you already haven't noticed,

they are all marketing heavily in Las Vegas to Buy your House.

So it is true?   maybe...  But at what cost?

When you Sell with an iBuyer, they give you an Offer Price.

Then as you read through the contract, you discover all the fees.

According to Collateral Analytics, a Research firm,

the average fees are from 13% to 15% (lets call it 14%)

Interestingly enough, they calls these fees "Convenience Fees".

They have to make enough money to pay the costs of two transactions, 

carrying costs of their money, repair costs, 

and they also end up paying the Realtor fees on the sale of the home

 and PROFITS.

When you Sell with a local Realtor, 

the average fees paid are 5% - 7% (lets call it 6%)

So to use an iBuyer, it is going to costs you an Additional 8%

In Henderson, the average Home Price is around $425,000

8% of that is $ 34,000

In Las Vegas, the average Home Price is around $350,000

 8% of that is $ 28,000

 How long do you have to work to make that much money

Is it worth it to you?

What is your money worth?

Other Issues to consider...

When you work with a Realtor, the Realtor is working for you. 

Looking to maximize your bottom line,

protecting you throughout the transaction.

iBuyers are trying to get the best deal they can, and they are aggressive.

When you use an iBuyer, those profits go to Seattle, Arizona or San Francisco.

When use use a local Realtor, that money stays in our economy.

When you use an iBuyer, their goal is to sell it fast and cheap,

lowering the costs of Comps in your neighborhood which lowers home values.

When you use a local Realtor, the goal is to Sell for Top Dollar 

keeping Home Prices in line.

When a Home is being Sold by an iBuyer,

it's always vacant, which is resulting in more break ins and crime.

Some Feedback from people who have used an iBuyer is:

they have an Inspection done and use it to have priced lowered...

they tell you there fees are the same as using a Realtor...

you don't know how much you're actually getting until the end...

Interest Rates Drop Below 3.5% - Big Deal...

So I got an email today stating that 

Mortgage Interest Rates had Dropped below 3.5%

Is that a "Big Deal" ?

Most people focus more on the Price of a Home.

But the amount of the payment is determined using both Price and Interest Rate.

So if you purchased a $400,000 house and had an Interest Rate of 5.5%

The Monthly Payment and Interest would be $2,271

Now with Interest Rates at 3.5%

The Monthly Payment and Interest would be $1,796

A Savings of $475 per month.

A different way to look at it is,

If you can afford a monthly payment of $ 2,000

and Rates are now at 3.5%

You can afford to buy a $ 450,000 home.

Where as... If you can afford a monthly payment of $ 2,000

and Rates are at 5.5%

You can only afford to buy a $ 355,000 home.

That's $95,000 more in Home Value for the same Payment.

Many people believe that since prices have gone up over that past few years,

that they would  have to settle for less of a house.

The Reality is that the same Monthly Payment can now buy you More...

So Yeah... It's a "Big Deal"

Below is an Interactive Mortgage Calculator you can use to find a rough estimate 

of what your payment could be with a 3.5% Interest Rate.

Powered By www.MortgageCalculator.net

Las Vegas... Let's Look at Some Statistics

The GLVAR recently released 

The Southern Nevada Market Update

 Here are a few highlights...

 

Nevada Leads the Country in Population Growth

That works out to More than 5 People every Hour

Most of these People come from California 

Why are they coming to Las Vegas?

Job Growth

Nevada is #1 in the Country for Job Growth

 What kind of Jobs?

Leisure and Hospitality lead the way...

Are they Good Jobs?

Nevada is #1 in Personal Income Growth

 So Yes, Nevadans are making more Money

 So we have More People

We have More Jobs

People have More Income

But is it still a Good Time to Buy?

Nevada is #1 in the Country in Home Appreciation

House Price Index Growth

Those are State Numbers, 

What about Las Vegas Metropolitan Area?

Las Vegas is the #1 Metro in the Country 

 With Housing Prices Going Up so Fast

Are Homes in Las Vegas still Affordable

Las Vegas is still far More Affordable than in California

Or Seattle, or Denver, or Portland...

Yeah, but is Now a Good Time to Buy?

If all that Info about Las Vegas and Nevada isn't enough

 We now have the Lowest Interest Rates in the past 2 Years

 Yes... Las Vegas is a Growing Area

with a Strong Economy 

and Higher Paying Jobs 

with a Vibrant Housing Market 

at a Time when Interest Rates are LOW

If you have any questions about Buying or Selling a Home

Please give Us a Call at Anytime

702-768-4556

Prices are Going Up... Time to Take Advantage of recent price drops!

 The last time we looked at these graph, Prices were Dropping.
The Election and Rising Interest Rates slowed our rapid growth.
Now Falling Interest Rates and the Seasonal Spring Surge have prices back on the Rise.
Our Housing Market is being Energized by a Strong National Economy, 
 the Mass Exodus from California and a Our Booming Job Market. 
Both Las Vegas and Henderson have seen Strong Job Growth 
and Falling Unemployment for the past 9 consecutive years.
We expect prices to continue to Rise and surpass previous Highs.
If you are considering a move, we would suggest you do it soon.

The Perfect Storm... Now is the Time...

Now is the Time for some Good News.

Realtor.com researched and determined that the week of 

March 31st thru April 6th is the Best Week of the Year to List your Home.

Most Sellers quickly become Buyers as soon as their House is under contract.

For Buyers, Mortgage Rates have been dropping over the past month.

 If you have watched the News over the past 6 months,

you have seen that Home Prices in Las Vegas have been dropping.

That is changing Right Now.  Henderson Home prices are back on the Rise.

 Making Now a Great Time to Buy and Sell.

If you have been considering a move, Now might be a Good Time.

Please give me a call  -  Elaine 702-768-4556