Home Buying in Las Vegas>Question Details

brad, Home Buyer in Las Vegas, NV

what are the emerging neighborhoods in Vegas? Looking for distressed homes. Cash buyer

Asked by brad, Las Vegas, NV Sat Mar 22, 2014

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Have you already purchase an investment home here in Las Vegas or are you still looking? If you are planning to invest in Las Vegas real estate you should read this Market Update and Recap: http://www.lvrealestatehelp.com/1/post/2014/05/robert-adams-…

You can watch the video of the update here: http://www.lvrealestatehelp.com/1/post/2014/05/robert-adams-…

"In regard to the Las Vegas market, we have stabilized over the past 6 months. To give you a quick recap of inventory here are some important milestones:

-mid 2011- we had almost 15,000 available homes for sale and we were in a strong buyers market. Low balls were still being accepted and values were flat. We had reach home values of the early 1990's.

-Oct 2011- Nevada AB284 was passed in attempts to protect consumers from the fraudulent foreclosures associated with the "Robo-signing" fiasco. For many reasons this caused banks to stop foreclosing. We saw a 90% decrease in available REO's hitting the market each month. From 5,000 a month to 500 a month. As you can imaging this drastically affected the supply side of the market causing prices to begin to increase.

-Jan 2012- after AB284 causing prices to increase and supply to decrease hedge funds and mom and pop investors started coming out of the wood work and buying properties up like hot cakes. With this huge increase in demand combined with the drastic drop in inventory levels appreciation started to sky rocket, bidding wars were beginning to drive prices up and sell for above appraisal value.

-December 2012- people were expecting the annual holiday slowdown in the market but were surprised when December sales soared and continued to drive up prices.

-Q1 and Q2 of 2013- bidding wars were still in full swing (sometimes seeing 20-30 offers on a property.) Inventory levels were are insane lows of only about 3,000 available listings. Appreciation was still soaring around 25%-30%. We were still in a very strong seller's market. Homes selling on average of about 10%-15% above appraisal value. Cash investors were driving this demand and often times out bidding owner occupants that did not have the extra cash to be competitive.

-Summer of 2013- Inventory began to increase, bidding wars were still around but seemed to be not as intense or as frequent. I attribute the increase of inventory to the fact that investors had either already jumped back into the market and were now in the "hold" phase of their buy and hold strategy, as well as many hedge funds and investors had moved their focus of acquisition to other parts of the country where they could still get higher cap rates. The days of 10-12% cap rates of 2009-2011 were gone due to increase property values on rentals that maintained the same rental rate. So basically you are paying more for something but renting it for the same rate.

-Q3 and Q4 of 2013- Inventory was surging week after week and there was a lot of talk about the market switching from a seller's market to a buyer's market in Q1 of 2014. Since the inventory was already increasing (April 2013 to November the inventory almost tripled) we were expecting the Holiday season to really send a spike of inventory and throw us into a buyer's market Q1 2014. To our surprise December actually decreased in inventory. This prevented us from going into a buyer's market and killing the appreciation of recent years.

-Since December 2013 to present- we have maintained an over all inventory level only fluctuating by a few hundred homes up and down. This tell me that the homes are moving about he same pace they are hitting the market. We were not in a healthy market in 2011 with 15,000 homes for sale. We were not in a healthy market with 3,000 homes for sale. It is not healthy or sustainable to have 30% appreciation. No market can maintain that long term. Now that we have balanced out around 8,000 (This includes SFR, townhomes, and condos for all of the Vegas Valley as well as Boulder City which is just outside of Henderson) I am expecting to see a healthy 10-15% appreciation this year. I do not see us going into a buyer's market yet. Investors can still get 4-5% cap rates, flippers can still find good deals now that inventory has risen, and the owner occupant that was getting out bid all the time is now driving the demand side of the market. I would also like to mention that I am not expecting a huge crash like the bubble due to the fact so many of these investment properties were bought with cash rather than leveraging with financing like the in the bubble.

-Present- The good listings that are priced right still sell within a week and may have 2 or 3 offers. Homes are selling for appraisal value or slightly below. If you want 80% of FMV than you need to think outside the box to find deals. It will be very difficult to find 80% of FMV on the MLS right now.
2 votes Thank Flag Link Thu May 15, 2014
Great Response, Robert. Mind if I use your recap on one of my blogs?
Daniel Richards REALTOR - Las Vegas
Flag Mon Aug 11, 2014
Great summary of what's happened in the last couple of years...I couldn't have said it better myself.
Flag Thu May 15, 2014
Please feel free to contact me and I can assist with your home buying needs in emerging neighborhoods.

Chad Roberts
Realty One Group
0 votes Thank Flag Link Wed May 28, 2014
Southwest Las Vegas for sure. We just came across a foreclosed home that was incredible. It needed work but wow with a little fixing up you could of made some serious money on that one! I can get you a list of homes just like this all across the valley. Send me an email or give me a call. Have a great day.

Kyle Brennan
Horizon Realty Group
702 785 2526
0 votes Thank Flag Link Wed May 21, 2014
Hi Kyle,
I have shorsale my townhouse in Dec 2012 and with some money for deposit my credit score around 650 to 700 can I qualified to buy a single family house.
I just work in this new job for a a year,

Flag Sat Jul 26, 2014
North Las Vegas

David Cooper I Can Still Find You Great Foreclosure Deals 20% Below Market
READ MORE http://www.lasvegaswinner.org
0 votes Thank Flag Link Mon May 5, 2014
Hi Bard.

Their are many properties out there that could be potentially good for investment homes. Depending on what your overall goal is would really depend on what area you want, and what type of property that you would want to purchase.

If you are looking for a rental then some area's might be better then others. If you are looking for a home for you then you would want to find a area that fits your needs better. If you are looking to fix it up and flip it. then that is something to consider as well.

Robert Lacy
Keller Williams Southern Nevada
0 votes Thank Flag Link Mon May 5, 2014
Hey Brad! There are 100's of cash buyers very active in Las Vegas Buying distress homes for fix up and flip or rent, along with Wall Street equity firms who have found a new investment market in rental houses. If you really have aroind $125,000 in cash, we can still find you a deal. However, my company will ask you to "show us the money" before we start working for you

DSavid Cooper Helping You Find Foreclosure Deals since 1994
READ MORE http://www.lasvegaswinner.org
0 votes Thank Flag Link Mon Mar 24, 2014

I actually have the ANSWER to your question and can go over it with you NO strings attached so call me anytime. There are certainly " better" areas to put your money in town where the chance of the ENTIRE market of that area seeing larger gains in the coming years due to neighborhood specifics. Although we do not have what you would call " emerging" areas ( I can very easily explain on phone ) we do have areas where values should increase faster or returns should be greater. Please consider letting us talk.
0 votes Thank Flag Link Sun Mar 23, 2014
Hi Brad,
Homes you can get rehab and flip are all around town. I have seen several in the past 2 weeks.
I suggest you work with an experienced agent to assist you in your search.
Many of us Licensed agents work with investors so we know where to look and how to negotiate a profitable deal for our clients.
Start your interview process on Trulia.

Best of Luck

Helene M Moore
Windermere Prestige Properties
0 votes Thank Flag Link Sat Mar 22, 2014
Brad, I'm not sure what you mean about "emerging." If you're asking about recovery in terms of value, we are seeing this all over the valley. I would be happy to assist you as you purchase investment properties - as an experienced real estate investor myself, I do have the skills necessary to help you with your investment.

Angela Brasser
(702) 460-2515
0 votes Thank Flag Link Sat Mar 22, 2014
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