Getting the Las Vegas Real Estate Market Back to Normal
The Las Vegas real estate market is on its way back to normal, but still needs investors like you!
Las Vegas was no stranger to the big real estate boom during the last decade, and the big crash that was seen a few years later. Las Vegas, however, usually has a more extreme version of events than the rest of the country when it comes to financial events, which is the case in the real estate market as well. Our home prices bounced back very quickly when compared to the national rates, but now we are seeing some signs that this may not be a good thing, as there are not as many buyers, leaving homes sitting on the market for much longer than normal.
Slowing Used Home Sales Rates
While new homes are still selling, used homes are seeing a decrease in sales. Nationally, they are seeing a 3% decrease, while in Las Vegas, they are seeing a 12% decrease from 2013, which is a huge decrease. One reason for this is most likely due to the fact that with the higher house prices investors are not buying as commonly as they may have in 2013. Las Vegas needs a new set of buyers to purchase these empty homes to help restore the balance and continue the real estate healing process, but this means new people coming into the area or people downsizing or upsizing, which dictates a need for them to sell a current home.
Returning to Normal, Organic Growth
While Las Vegas saw a lot of real estate sales since the housing market crash, much of this can be attributed to the influx of investors that flooded the market picking up deals. Now that prices have risen, they have pulled back and this means that the market is slowly returning to its normal state. In Las Vegas, prices are still rising at more than 10%, which means fewer investors are buying and the market is waiting on the normal type of growth that comes from people moving to town, upsizing, downsizing, etc.
New Home Builds Brings More Inventory
Homebuilders are still building new homes, which adds even more inventory to the market. Unfortunately, in Las Vegas new home sales are slightly healthier than those of previously owned homes. This is largely due to the fact that they are being built in the suburbs and they offer numerous neighborhood amenities that are not typically found in older neighborhoods in the center of Las Vegas.
Las Vegas real estate has seen some major ups and downs, but it is still moving in the right direction. With some time, it will be able to return to its natural state. Real estate professionals are finding ways to make the most of the real estate market that they are in. Thinking outside of the box to market homes to buyers and to help sellers sale their home quickly are ways to work with the real estate market that we have to help it to continue to heal and get back to natural growth.