Ken Herrera, Real Estate Pro in Las Vegas, NV

I'm interested in Opinions about the Las Vegas Housing Market??

Asked by Ken Herrera, Las Vegas, NV Wed Oct 24, 2007

What do people really think of it? What does the rest of the country think about the Las Vegas Real Estate Market?

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BEST ANSWER
Kenny,

It is horrible, Vegas is horrible, go away, stay away, it will never get any better.

THIS IS ENTIRELY A JOKE DO NOT GIVE ME THUMBS DOWN, KENNY HERRERA IS MY OFFICE MANAGER SO I AM MESSING WITH HIM!!!!

Sincerely,

John Goad, Jr. of The Goad Team
Century 21 Infinity (the best office in Las Vegas...right Kenny!!!) Haha.
Web Reference: http://www.GoadTeam.com
1 vote Thank Flag Link Tue Jan 15, 2008
Hello

On various posts I have read and addressed my perspective as a buyer in the current market. One thing that keeps being repeated is "Now is a great time to buy" and 30000 to 100000 new jobs in Vegas.

Here is the problem with this from a non realtor point of view...

1. Now is a great time to buy...while this may be true to a point, if you look hard enough on this site you will find those in the real estate business who made this same declaration in October 07. Since then prices have dropped 20%. So is now really a good time? Yes, Maybe, No

Yes - if you have the cash, credit, and time, you can find some good REO's. I have looked at a bunch and if you find one with all the appliances still in place, no missing cabinet or fixtures, and no major repairs needed, then jump on it immediately. These are the good buys and are few and far between.

Maybe - if you find an REO needing less that a 5K investment and you have the 5K yourself to put into it AND you plan on staying in the house for 5 years, then this may be for you.

No - REO's beat up to the point where they need in excess of 5k in repairs.

Traditional resales are generally out of the price range of the REO's and there are no comps to support the non REO pricing.

30000 to 100000 jobs. - OK, lets be realistic here folks, most of those jobs will be SERVICE ORIENTED jobs that don't pay enough for someone to buy a 300K house in todays market without great credit and a big downpayment. The rental market will be affected more than the housing sales market in my opinion.
Its not going to be like in the past where a loan was given with stated income. Yes, the jobs will come and so will the people, but rentals seem more likely to the income of the workers particularly with the rise in gas, food, and energy.

So to all those realtors not in touch with the real world, it is not the best time to buy. Quit putting your commission ahead of your clients best interest.

For all those realtors who tell it like it is and inform the client of the real market conditions, trends, and stats in order to properly inform your client of what they are about to get into, I commend you.
5 votes Thank Flag Link Wed Apr 23, 2008
If your goal is total financial ruin for you and your family then certainly take the advice of a realtor on straight commission..Never ever take advice from someone on commission, never.

the facts are that homes in las vegas are depreciating at a rate of $170 a day..all of the PMI insurers have blacklisted Vegas, no one with less than 20% down can even close a loan..and it's going to get worse. so just rent, there are literally thousands of homes for rent in all areas, pay a fraction of the amount you'd pay on a mortgage, watch the total collpase over the next 24 months, save some cash then make a move on a property when it bottoms out...that's going to take 2-3 more years however..

forget buying and certainly immediately discount any realtor claiming it's a great time to buy, they are fools and they are hell bent on getting a commission and could care less whether you take a bath financially or not.
4 votes Thank Flag Link Mon Apr 28, 2008
This answer is for MIKE only. You have WAY too much time on your hands. Why don't you get a real job instead of slamming a profession where the majority of people work extremely hard for their STRAIGHT COMMISSSION. You obviously don't have to work, or have someone paying you under the pretense of working while you waste time with your idiotic crap. Your answers on Trulia are negitive and mean spirited. Why would you think it makes sense for someone to pay their landlords mortgage.? You are stupid and need a life.
3 votes Thank Flag Link Tue Apr 29, 2008
it is a fabulous time to buy! However, research and srong negotiating skills by your agent are critical.
Rich Brodkin
The Brodkin Group
Web Reference: http://richbrodkin.com
3 votes Thank Flag Link Thu Apr 24, 2008
To me its a toss up, not sure if its bottomed yet. At some point it will be a great time to pick up real estate there for cheap, i guess it comes down to how long your investment plan is. Now might be a good market if you plan on holding for awhile, so many deals.
3 votes Thank Flag Link Fri Oct 26, 2007
Hi Tom,

It's impossible to predict the future, and I wouldn't begin to say there's anything that is guaranteed in real estate and most other investments. I've seen almost identical Las Vegas housing market commentary as yours appearing in Forbes, but it appears there are some other factors they tend to leave out. More often than not Forbes is about as objective as the NFL when it comes to Las Vegas.

For the very thing you, and they, mention as a driving force.....employment, Vegas does have more recovery potential than most. Jobs are projected to be on the increase beginning the latter half of this year and growing through 2010 and beyond. That's pretty obvious with the largest commercial construction underway in the history of Las Vegas. There are numerous articles on it and even this report from the Nevada Dept of Employment.

http://detr.state.nv.us/PDFS/2008_Employment_projections.pdf

That report also shows that recovery, just like real estate appreciation or depreciation, is regional. It shows that within the state, as the western portions of NV don't have the same growth opportunities on the horizon.

There is also another aspect to the Las Vegas economy that's been obvious in this economic slowdown. As domestic travel has declined, gas prices rising and airlines shutting down or reducing flights that effect tourism, it's been buffered here by an increase in international travel. While the dollar has recently appeared to show signs of stabilizing, it still offers great value to many foreign travelers, and for investment opportunities.

So there is a rather large number of jobs estimated to be created and will be across the board in wages. Currently Las Vegas has earners of $45,760 and above that fall into the 75th percentile, 25% of the employed, so around 250,000 people. If that trend continues through this employment growth there would be a substantial number that can afford median housing or above, especially in 2 income households.

On the issue of present affordability, recently the consulting firm Applied Analysis has reported that 36% of homes on the market in Las Vegas are now affordable to median wage earners. Taking a quick look at the MLS shows that around 40% of listings fall at or below, and some well below, that $246k median price you quote. That appears to make their estimates be in the ball park.

For yet another point of view, Business week also lists Las Vegas as a "buying opportunity" due to current pricing levels.

http://images.businessweek.com/ss/08/04/0418_housing/index_01.htm

As you'll notice just among their top 14 picks, Vegas isn't the most expensive market by any means. That is also another issue with affordability...those that are bringing any equity when they move here. Not everyone is a first time buyer. I have spoken with several that have accumulated equity, sometimes more than the median price of homes, and find Vegas an incredible bargain. Throw in the relatively low property tax and no state income, it carries even more appeal.

So no crystal ball, but there's a lot more potential for Las Vegas than some limited observations may show.
2 votes Thank Flag Link Sat May 3, 2008
In terms of the housing market in Las Vegas there will always be those who are Pessimistic and only hear and listen to what the newspapers have to say.

Now im not saying there’s know truth to the decling home values and high numbers of foreclosures. This is true but than why are customers coming here by the droves to pick up GREAT PROPERTIES. THE NEWS reports don’t speak about this situation. Hmmm wonder why? a thought to ponder ~~~

Those of us Working Realtors who are out there in the communities and not sitting behind a desk are working diligently finding fabulous REO’s negotiating resale properties where you have motivated sellers, bank owned properties that are like new and are in move in condition, and as I have said earlier in my previous post there are those fixer uppers. In addition, to all the resale’s many of us agents have maintained professional associations with many of the local agents representing new construction. We are informed about standing inventory and excellent values. I have just in the last month negotiated a one year old property in Green valley /Henderson location 89052 location. This home has approximately $25,000 worth of upgrades and is in move in condition. There were multiple offers on the property my client was given todays market value and made a decision to give her best offer and she was approved for the home we close any day now.

My point about this deal is this. Great home list price was way under market but you have to realize the list price is just the starting Bid for those who think are values are going down … people think again…. Property under $120.00 a sq foot and than you have multiple offers because customers are educated and realize the value in these properties therefore the asking price goes up and yet clients are still getting a home at fair market value.

I have 5 deals this month similar to that 3 new construction homes and one foreclosure….and my phone is still ringing. Get this brand new home in Mountains Edge $166,000 yes you might put in some upgrades approximately 5-10-% of the base price and your still getting a great deal and getting closing costs paid for and some other perks. 1600-1700 sq ft.

So If you ask agents who are out there in the field networking and looking for deals you do find them for your client and negotiate terrific business deals.

Our market is exactly the same as it was approximately 4-5 years ago multiple offers prices going up exponentially bidding wars and sellers making huge profits.

Now we have a buyers market where customers are coming to Las Vegas buying up properties, multiple offers and buyers are getting great deals.
Think about this all those who are so pessimistic about buying in Las Vegas…… when you will ever see prices going for under $125.00 a sq foot. ?
Come on people get off the couch and see for yourself……!!!!!


That is the reason REALTORS say NOW IS THE TIME. BE SMART BUY LOW SELL HIGH!!!

DON’T LOOK BACK AND SAY SHOULDA WOULDA COULDA …… !!!!!


HAPPY HOUSE HUNTING
Helene M Moore
2 votes Thank Flag Link Wed Apr 30, 2008
Bob makes a good point "Is it time to buy in Vegas" is all relative. While home prices have declined further than they were 6 months ago, the mortgage lenders have also tighten their guidelines since 6 months ago. While a buyer may have paid a little higher price 6 months ago than that same home is selling for today, that same buyer may not qualify for a loan today at the lower price. So therefore even though prices went down, that does not benefit the buyer that is now no longer able to buy.

As far as market conditions, things have definitely improved. Homes we could not give away 6 months ago, now have multiple offers on them. Most buyers or agent working with buyers that need the seller to cooperate with Down Payment assistance and/or closing costs will tell you, it is getting very tough to get a seller to cooperate with these programs today due to the multiple offers on the properties (provided the property is priced competitively). While 6 months ago many sellers would have jumped all over offers such as these.

The things I see going on in the market at this time are reminiscent of the Real Estate Boom of 2004-2005 where first time buyers had little chance of getting a home, as their offers are being beat out by "investors" who have large down payments or are paying all cash. So if things continue on the path that the market is heading in, the first time buyer (or buyer with little cash) that are sitting on the fence do not get in soon, there is a good chance they may miss out on an opportunity to own a home. Along the lines of what Bob pointed out, however what Bob did not point out is that if those buyers that are not making larger salaries do not get in soon, they will more than likely be “renting” a home from those that did get in. A prime example of "the rich getting richer while the poor are getting poorer" syndrome
Web Reference: http://www.GoadTeam.com
2 votes Thank Flag Link Thu Apr 24, 2008
Who really knows...We could all be investing in false hopes..I own a townhome and its a big town home..Its 1,700 sqf. and i bought it for 255,000 and it appraised at 301,000..but now that market is so bad i have no equity that i once had, and my house keeps going down in value..ARGGGGGGGG
1 vote Thank Flag Link Tue Jan 15, 2008
Hello, I think the market is primed and ready if you're interested in purchasing a home. Even if you're a seller, if you're motivated, you can still get it sold. The media has henched some unforseen damage by hyping the markets downtrend. Yes the market has slowed down, but you have to see it from the perspective of this is where the market would be if Las Vegas hadn't experienced such tremendous growth over the previous few years. This is a little less than a normal market cycle. Summing up the market in Las Vegas...it's Golden and a great time to participate in the ever evolving market.
1 vote Thank Flag Link Wed Nov 28, 2007
I think it is a great time to buy in Las Vegas Ken!
1 vote Thank Flag Link Fri Nov 23, 2007
If you are paying $900 a month rent for an apartment and can get a house for $900 a month including piti, the tax benefit alone tells me to buy. These 4.5% fixed rate loans for 30 years will disappear in the blink of an eye.

DAVID COOPER Foreclosure Specialsit with 35 Years Investing Experience. For a free list of Bargain Homes Call +1-702-355-8807 or click website
0 votes Thank Flag Link Mon Jul 4, 2011
There is NO easy answer that fits everybody in every situation so my answer is..it DEPENDS. is it the right time for a cash invesstor paying all cash to buy rental property with positive cashflow? YES! Is it the right time for a first time Buyer using FHA or VA loan to buy owner occupied when their TOTAL cost of ownership will be less then current rental rates? YES. Is it the right time for a first time investor to buy flip property using a creditcard to finance? NO!
EVERY buyer is different and has different skillsets, different credit scores, different timelines, different goals so if ANYONE gives one answer that fits ALL people then that answer MUST be wrong for some people.
As a PROFESSIONAL Realtor; I sit with every client and ask THEM what is important to THEM, what goals they have for the property, what THEIR timeline is, what THEIR credit is, and then see how I can help them successfully accomplish what they are trying to do and sometimes the right answer is NOT buying. I try to think of my job as NOT being a salesman but rather a Real Estate Advisor and providing the education the buyer or seller needs to make a choice that is in THEIR best interest and not what will put a check in my pocket.
0 votes Thank Flag Link Sat Jul 2, 2011
The combo of greatly reduced prices, 60% below 2006 selling levels, and interest rates at 50 years lows, below 5%, makes this a powerful incentive to buy. The Auto Club said Las Vegas isd the #1 destination for singles nad couples with no children over the July 4th holiday. Las Vegas is still alive Now and for the Future.


DAVID COOPER Foreclosure Specialist in Las Vegas with 35 years investing experience. For a Free List of Bargain homes Call +1-702-355-8807 or check website below
0 votes Thank Flag Link Sat Jul 2, 2011
Ken I wake up daily and just deal with it. Every day is a new day and I accept whatever comes my way.

I do a lot of BPOs so I have a pretty funky insight to our market. What I am seeing: Slowdown of trustee sales purchased by private investors (mostly due to tax credit expiring,) slowdown in REO, uptick in short sales, slow down in defaults (which seems to be a good indicator even though we still have a ton of future inventory to blow through.)

I think the public perception is that they are the only ones shopping in this environment of distressed prices and low rates which in reality is false. I am sure as an agent that you are tired of that attitude as I am :)
0 votes Thank Flag Link Tue Nov 30, 2010
"Traditional resales are generally out of the price range of the REO's and there are no comps to support the non REO pricing. "

Really! Try this traditional SOLD dated November 12, 2010: 5216 Copper River, Las Vegas 89130 $169,000
Sold in 12/02/2005 for $455,000 public records.
MOVE IN CONDITION. All Inspections, title insurance, appliance warranty.
Monthly payments with 20% down Around $930

A seasoned real estate agent with many completed sales can negotiate most listed homes to the going market price for REO's, and get you a move-in ready home with professional inspections and warranties.

David Cooper 702-499-7037
http://www.lasvegaswinner.org
0 votes Thank Flag Link Tue Nov 30, 2010
Great question Ken.
The opportunity for buyers is at its best!!!

We are experiencing an increase in buyers looking to purchase foreclosed homes, short sale properties and brand new construction homes.

There are many foreclosures that are not fixer uppers on the market and are in great condition.
Secondly, there are those homes that are complete rehab properties, and then there are properties that just need minor paint and repairs. The asking prices range from 70 -130 dollars a sq foot depending on the location and the condition of the property.

In terms of new construction homes there are great deals also builders are paying closing costs giving upgrade incentives and many other incentives to get your business.

Now is the time to negotiate to buy in Las Vegas, it is my opinion we may never see price points this low again.

Happy House Hunting.

Helene M Moore
0 votes Thank Flag Link Thu Apr 24, 2008
Ken...

The market means developers need to get more innovative. Register at the below link and see what I mean. They have setup a program that guarantees positive cash flow for 2 years....

It's keeping the market alive and producing sales.
0 votes Thank Flag Link Wed Feb 20, 2008
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