There have been a lot of changes in Vegas, so I wanted to update everyone.
Due to higher interest rates, higher prices, certain hedge funds pulling out of Vegas, decreasing cashflow, increased traditional sales (more people can afford to do a traditional sale now that prices have gone up, less people are under water), etc Las Vegas inventory is on the rise. Early 2013 we had around 3,000 SFR, Condos, and Townhouses available for sale in areas 101 through 700, which include Las Vegas, North Las Vegas, and Henderson. As of today we have over 6800. Inventory has gone up week after week since the beginning of July. Above people were talking about Summerlin. I recently read that zip code 89138 which is in Summerlin has had an inventory increase of 260% in the last 3 months. If this trend continues the market will soften. To what degree it will soften is debatable due to several factors: new home building, if and when they release the 80,000+ homes that are currently in default in the Valley, the effects of AB 300 which will be off set by SB 321, etc.
Another important change that should be noted is that traditional sales now make up around 85% of available listings. This is a huge change compared to when REO's dominated the market and then short sales after that.
With all of that being said you still have to look at the big picture which is that we are still undervalued and homes cost much less than majority of the country.
With all of this being said, I am advising my clients to sell NOW before the market softens. We can still get sellers top dollar, above appraisal value in most cases. In my opinion if you sell now you will have the ability to sell high and buy low again once the market softens and better deals present themselves. The days of bidding wars and selling for around 10% above appraisal value will soon be gone and buyers will have the opportunity to low ball and get deals at or below appraisal value again.
I hope this is a helpful update!
The Adams Team atÂ
Rothwell Gornt CompaniesÂ