Posted September 26, 2018 in Real Estate Advice,Real Estate Terms
You may have heard about the Las Vegas real estate market shift 2018. Many top cities in the United States have experienced major shifts in the market in the summer of 2018. While many news outlets will advertise that this is the end of the world and your financial future, this is actually something that is quite normal. Just because market shifts are “normal” doesn’t mean you can just put your head down and ignore what is happening around you. I mean you could, but that would not be a smart thing to do whether or not you own Las Vegas real estate or think you want to own real estate or not. Below we are going to explain what is happening and what it could mean for you specifically.
A market shift is merely a change in the direction or trends of the Las Vegas housing market. This could be any sort of change: homes getting more expensive, less expensive, higher demand, lower demand, etc.
There are many different aspects that affect a housing market, but what appears to be the main player in this housing market shift is an increase in inventory. Las Vegas, as well as many other major cities in the United States, have had very low levels of inventory over the last two years. This summer saw a huge increase in available homes for sale, and the number of homes for sale increased faster than the demand for homes. This caused a slowdown both in the Las Vegas real estate market and many other housing markets in the United States. In Las Vegas, we still have numbers that reflect a low inventory as we only have about 2 months’ worth of supply of homes for sale when normal levels reflect inventory that could last 6 months.
So why is this such a big deal if we still have very low inventory compared to average, healthy markets? One reason is many fear change and the media often likes to take advantage of the things that people are afraid of. Another reason is that a somewhat slower market is not what many real estate professionals have experienced over the last two or more years and they are afraid of what the slow down will mean for business. Lower demand levels can also indicate prices won’t be rising as quickly, and that can hurt new home builds or people who have just refinanced their home or taken out a second mortgage based on what the home is worth right now.
Depending on what your situation is, the Las Vegas real estate market shift may mean something different for you. What’s important to note is that Las Vegas’s real estate market is slowing down at a slower pace than many other markets. We’ve recently taken the lead on the hottest real estate market in the nation as the leading city for several years, Seattle is slowing down much faster than Las Vegas’s market is. This is nice because Las Vegas may have a little more of a preview of exactly what this shift will mean.
Sellers: If you are selling a home in Las Vegas or plan to in the future, this increase of inventory may mean you have a little more competition amongst other sellers. While over the last year a seller could possibly receive multiple offers and receive more than the asking price for your Las Vegas real estate listing, this is probably not going to be the case for a little while.
While Las Vegas home sellers may need to be more flexible when selling their home, it’s important to note that the housing market still has somewhat low inventory. If inventory continues to increase, sellers may have to be even more flexible than they would have to be at this moment. Nothing in real estate is definite, and we can’t tell you what will happen next, but we can tell you what is happening and what that may mean for you in the future. So, if you are interested in selling your home in Las Vegas, it may be best to not wait till there are even more homes for sale in Las Vegas. We offer free seller consultations where we can meet with you personally and see what your home selling needs are. We can be reached at 702-509-1446 by call or text.
Buyers: If there is a shift in the market caused by increased inventory, this is good news for buyers. This may mean that the days of having 15 rejected offers before you finally get an offer accepted are over. With more, you should have more options in your price range and location. You may not have to have large amounts of cash on hand either as homes may not be selling over appraised value. You also may not have to run to homes as soon as they are listed with an offer in hand, but with more inventory and more competition amongst sellers, you may start to have a little time to think about a certain home depending on the area it’s in and the demand.
If you were worn out and gave up on buying a home in Henderson or Las Vegas, this market shift may indicate that you need to take a second look. With inventory increasing, the Las Vegas real estate markets’ prices may not be shooting up as fast as they have been. Overall, this market shift indicates easier times for buyers. This doesn’t necessarily mean things will get cheaper, just less hectic.
Renters: A shift in the market should make all renters pay attention. You may want to contact an experienced local real estate agent like Nevada Desert Realty before you renew your lease. Even if you are a year out from buying, they can get you going on the right track and get you in contact with a mortgage lender who will give you tips to saving or correcting your credit score. This market shift may also mean steadier rents for a while. While home prices were shooting up, so were rents. As home prices may not be rising as much as they have been, this may mean that the rental markets’ prices will become more steady.
If you are a renter, don’t fall into the trap of thinking that you are not affected by the real estate market around you since you do not own a home in Las Vegas. Buying a home is a great way to lock in a monthly rate for a home. Historically rents have increased extensively over a person’s lifetime, but if you purchase a home or condo instead of renting you are putting your monthly payment towards something that you own and potentially pay off so you won’t have a monthly mortgage or rent payment. There are other incentives to purchase a home instead of renting long term that you can research and find what is best for you. You can also contact us at 702-509-1446 to schedule a buyer consultation even if you don’t think you will be able to purchase a home in Las Vegas in the near future.
Overall, a shift in the Las Vegas real estate market can be an exciting thing. It’s not something everyone should freak out about, but it does mean that you may have to pay attention to what’s happening around you and your investment(s). This housing market shift in Las Vegas may be a great opportunity for you and your future!
