The Las Vegas real estate market is presently going through a “head-scratching” period. We keep seeing the statistics that our housing prices continue to drop, but at the same time there are multiple offers on most properties. Economics 101 would teach us that supply and demand drives prices. But the reality is that there are literally tens of thousands of homes that are vacant or in default with their lenders, but the inventory just isn’t coming to market! So why is it that the demand for houses seems to be almost overwhelming but yet prices are dropping? This seems to be contrary to what should be happening? More homes on the market should mean downward pressure on prices and fewer homes on the market should mean upward pressure on prices. I guess suffice it to say “it is a very good time to be buying a home in Las Vegas!” Affordability will probably never be better than today.
There is nothing better then buying something brand new. That great smell of leather in your new car, that new bicycle where all the gears work all the time or that new home where no person has ever lived in it before. But the new economic realities has all of us re-looking at things and evaluating from a new set of eyes. Currently the average price-per-square-foot of new homes is just over $100/ft. While at the same time the average for resale homes is right at $70/ft. NUMBERS AREN’T EVERYTHING….so let’s not get too hung up on the straight numbers!!! Resale homes may require repair work which will bring up the true cost and other people have already lived in and occupied your new “home!” There are just some of us who will take nothing but a brand new home. But the wide differential today between new and resale should at a minimum make us stop, evaluate what is really important in our home purchase…. and make the right decision for ourselves!!
The Southern Nevada Index of Leading Economic Indicators turned in one of it’s largest gains in 30 years in March! Big gains in travel and tourism drove the positive index readings. And the largest gain of all was in taxable sales, growing 6% on a year over year basis. Having lived in Las Vegas for nearly 30 years, I have watched the town grow from just over 400,000 population to it’s present, almost 2 million population. What I’ve noticed is that when the rest of the country does good…Nevada does good. This may be a sign that the worst may soon be over, and Las Vegas and the State of Nevada may soon start a slow but steady recovery period. It’s time!!
Las Vegas, NV and Miami, FL are in a dead tie as the two majors cities where it is now actually CHEAPER TO BUY A HOUSE THAN TO RENT ONE! According to Trulia.com, one of the country’s largest real estate websites, their Rent-vs-Buy Index shows that Nevada real estate prices have now become so affordable that it makes more sense to buy a house than to rent!! And if you “have to rent” because you recently had a foreclosure or short sale…. then you may want to look at www.AnotherChanceNevada.com and see if you may be able to purchase today while prices are at fantastic lows. Once you’ve owned a home of your own, seriously who wants to rent?