BluefoxToday blog : Las Vegas Property is HOT HOT HOT...

Las Vegas Property is HOT HOT HOT...

While prices for Las Vegas homeowners are NOT NOT NOT!

Inventory continues to decline (still a seller’s market for 2+ years) YET Las Vegas property values CONTINUE to decline.

Congratulations Las Vegas – pat yourself on the back for defying all basic economic laws of supply and demand!

Here is the fuel that is feeding the fire:

A while back I wrote about how rents are declining in the valley.  Last weekend I had three investors contact me asking me if this is going away.  The big answer is not until the employment situation improves in the valley, investor activity slows and distressed inventory declines.

I don’t expect Las Vegas property values and rental values go UP until the above picture gets a little bit more rosy.  Las Vegas rents are not declining rapidly, they are declining very slowly.  What I see (since I work Las Vegas area rentals,) is that new investor purchases are willing to UNDERCUT their competition when they go on the market.  No investor wants a vacant home.  Home insurance can drop them and vacant homes increase the possibility of theft and damage.  Might as well take a couple bucks less on the monthly rent than risk theft.

When will the picture for Las Vegas property improve?  Not until everything above does.  I don’t see it happening any time soon.  It isn’t the president or the government (Las Vegas was on the “out’s” before the election in 2008.)  No government program can stave off the natural cycle.  No government program can wash away the mindset of strategic default.  Las Vegas property values have deflated 8.6% year over year (Sept 2010/2011) so that pretty much shows that the $8K tax credit for first time buyers artificially inflated our prices for a while (ave home price in low $100K’s.)

It’s just the economy, stupid!  Let’s encourage small business to rise and find some jobs for the valley and the rest will take care of itself!


Thanks,  Renée Burrows 702-580-1783 Broker/Owner, REALTOR®
 

 

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Comment balloon 17 commentsRenée Donohue • October 21 2011 10:57AM

Comments

Hi Renee...like you say the Sellers market is defying all the laws...what's interesting is there are Las Vegas real estate buyers shopping which is healthy. You sure know the Las Vegas Rental and real estate market.

HAPPY HALLOWEENHalloween-Fred Carver

Posted by Fred Carver Personal Real Estate Corporation, Accredited Real Estate Consultant (RE/MAX Camosun Victoria BC Real Estate) over 6 years ago

Renee - Unfortunately, LA can match you on that unemployment number...but there are always opportunities to be found in real estate.

Posted by Norma Toering Broker for Palos Verdes and Beach Cities, Palos Verdes Luxury Homes in L.A. (Charlemagne International Properties) over 6 years ago

Hi Renee, Unemployment so high.  so sorry.  Glad it is a seller's market.  Not so here.  Inventory is so high about doubled since start of spring too much.

Posted by Pat Laracy Baker, Realtor, Green, ABR, Holliston, Massachusetts (Realty Executives Boston West) over 6 years ago

Renee,

Great post I could not agree more. Three to five years from now the people who are purchasing now will be very happy with there purchase.

Posted by Nicole Needham, SFR (530) 302-5478 (Needham Realty) over 6 years ago

We are in a time where nothing seems to be making much sense.  Sellers market and prices declining, I would dare to say everything will and does revolve around employment.

Posted by Bob Jakowinicz, Michigan Real Estate Agent-- MI RE Adventures (National Realty Centers Livonia--Bob Jakowinicz) over 6 years ago

Norma - agreed with the opportunities in real estate!

Fred:  Thanks!

Pat:  Sorry to hear about your rise in inventory.  That sounds NO BUENO!

Nicole:  I am hoping so!

Bob:  NOTHING makes sense - NOTHING!!  You got that right!

Posted by Renée Donohue, Las Vegas Real Estate Broker - www.urLVhome.com (Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate) over 6 years ago

Wow, that is a huge unemployment rate.  But all in all, if a buyer can get it, I would think the Vegas market is a good one.  We all know, one day it is going to go back up.  One day.

Posted by Jane Peters, Connecting you to the L.A. real estate market (Home Jane Realty) over 6 years ago

Rene,

Good nalysis of what appears to be is a very difficult situation to understand as well as try to do normal with. The unemployment number is huge. I understand new investors undercutting the competition. The whole mess is really hard to grasp.

Posted by Robert Bob Gilbert, Your Katy TX ( West of Houston) Real Estate Expert (Berkshire Hathaway HomeServices Anderson Properties) over 6 years ago

Renee - I love your honestly about the Las Vegas NV real estate market, so many agents tend to sugar coat things.

Posted by Michelle Gibson, REALTOR (Hansen Real Estate Group Inc. ) over 6 years ago

Great market report, Renee!  Las Vegas is not alone though in "defying all basic economic laws of supply and demand" as we are seeing here in El Dorado Hills too.  (Not as drasticly but still our inventory is down but prices have not gone up.)  Have a great weekend!

Posted by DeeDee Riley, Realtor - El Dorado Hills & the Surrounding Areas (Lyon Real Estate - El Dorado Hills CA) over 6 years ago

Renee, I hope your market will improve. Good information for consumers looking to buy or sell a home in Las Vegas..

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) over 6 years ago

It's unfortunate that sales are so strong but prices continue to decline.  The unemployment issue is probably (this is just a guess on my part) due to decreased spending from tourists due to the generally weak economy.  If we see solid jobs improvement elsewhere (which is happening), then I'll bet LV starts to snap back.

Posted by Bryan Robertson, Broker, Author, Speaker (Intero Real Estate) over 6 years ago

A big suggest on this one Renee.  LOL defying all laws of supply and demand . . . can we say it's a gamble in Vegas?  You're right about the values being HOT for buyers . . . hmmmmm . . . NOT so for sellers, even with low inventory.  Yes, it's a crazy local market which you know extremely well!!

Posted by Carla Muss-Jacobs, RETIRED (RETIRED / State License is Inactive) over 6 years ago

WOW! 15% unemployment rate. That is like 6% more than the average unemployment rate. Hopefully your Real Estate Market improves soon Renee. Thanks for sharing your Real Estate Market Report with us.

Posted by Lanre-"THE REAL ESTATE FARMER" Folayan, I don't make promises.I deliver results.SOLD HOMES (Keller Williams Select Realtors-Buy a home in Washington DC. Sell a home in Washington DC) over 6 years ago

Renee - Las Vegas is a vacation hotspot, and one of the things people cut back on when finances are reduced are vacations and luxury items. If we could just convince our government leaders to do the same thing instead of deciding to spend even more, we might recover a lot quicker. Just imagine if individuals decided to act like our Federal government.

Posted by The Brewer Team - Benchmark Realty (Benchmark Realty) over 6 years ago

Renee ... the great thing is that you guys are selling homes!  The only solution to this mess is  ... Sell ... Sell ... Sell!  congrats!

Posted by Lisa Wetzel, CDPE, SFR carsonvalleyland.com (RE/MAX Realty Affiliates) over 6 years ago

Renee,

Looks like Vegas property values are being reset to the 80's, or something. A new cycle is being formed, hopefully it won't overheat like the one that caused all the current pain. One of these days normalcy returns.

Posted by Esko Kiuru over 6 years ago

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