LAS VEGAS LAS VEGAS REAL ESTATE MARKET? II

love Las Vegas! I was born in Las Vegas! We have had a robust real estate market. Since we have survived the economic crash of 2008, the consistent climb through 2019, then the response to the Pandemic, 2020-2021, a fast, upward trend, has now begun to level out. I’ve been a licensed realtor since 1988 and I have survived and thrived in the ebb and flow Las Vegas home market.

What changes are we seeing in the LV Real Estate Market? To combat inflation, specifically in the housing industry, the FEDS buying of Mortgage Backed Loans, has come to a close. Hence, the rate hikes. As a result, starting in June, single family residences on the market went from 2200 to 8500. Homes are now on the market longer. So, how does one maneuver this market?

The first step to take when rates start to climb, is to search for and find the mortgage programs that offset the hikes. Right now, rates are around 4.99% Conventional, 30 Year Fixed. How I recommend my clients respond is to take a permanent buy down (ask the seller to pay, or split the cost), and you can do a 2/1 buydown (30 year fixed) Year 1 is 3%, Year 2 is 4%, Year 3 is 5% fixed. When the rates come back down, which they are expected to; refinance your rate. We don’t have the interest only programs available like we did before the economic downturn of ‘08‘09, but there are safer, and more creative programs available.

New Home builders contact me regularly and update me on all of the price drops and incentives they’re offering. A builder dropped move-in ready homes by $50K, and are offering rates at 3.99%. I’m maneuvered many markets, and my clients have done well, in all of them. (Hint: Make sure that you call a Realtor, before you go to a builder. The onsite agent works for the builder, so walk in with your own representation)

This market will correct itself. However, in response to the pandemic, the Federal

Government jumped in to keep everything moving. As an agent, the rush of that market at times, is really difficult. So many offers on one piece of property with prices going $20K-$100K over list! Right now, the competition for housing has slowed and the savings from that alone is great! In addition, a buyer can now get a seller to negotiate, and we are leaning close to the line of a buyer’s market. I do not believe this will last.

As a native of Las Vegas, I have experienced many markets, since 1988. My father was a small real estate investor and builder too, and I remember our conversations when I was a child, with him telling me about buying and selling acres on Boulder Highway profiting in the early 60’s. I then remember conversations in the 90’s, where he would talk about Spring Mountain Road., and areas near the LV Strip, “If I only knew what was going to happen.” Yes dad, I too wish I had a crystal ball.

No matter what, Vegas will continue to grow. There are factors, such as water, that may slow down the rate of building, but with the addition of professional sports to our market and the influx of California businesses relocating to Nevada, people will want to live and work in our state.

All forecasts that I’ve heard are in Las Vegas, by end of the year, interest rates should be around 4.5% (same as in 2019), and to combat recession, rates will come down a bit. None of us have a crystal ball, but 1 or 2 of the aforementioned events occur, prices of houses will skyrocket, and we will then be like San Francisco, New York, or other places that building has been maximized.

As of today, seller’s need to be realistic and list their property’s based upon reality and the market. People are in fear listening to the media and all of the reports out there. My clients have been getting great pricing, and they’re payments are excellent.

On another note, my Airbnb business has been doing great! I’ve brought several investors into the business, since I have an Airbnb management team, who facilitates all aspects of the business. We are legally structured, and growing. The returns are $10K-$15K per month, with certain homes, in carefully selected areas of Las Vegas. Additionally, these homes are highly regulated and managed that there are no behavioral issues, or homes that are not taken care of, while occupied. I also have longer term rental management, for those who have a different vision for themselves.

Whether you are listing a home, buying, or wanting a great passive income with a RE investment, do not wait and watch which way the market goes next. Take action now. I have people from 6 years ago, waiting and waiting, then they’ve missed those market gap opportunities. I personally believe we have a “lull” and when it kicks back up, these prices will be in our rear-view mirror.

Patty Linson is a top producing agent with Life Realty. Licensed in 1988, call her to list, or buy, real estate. She is a Luxury Home Specialist with a niche in Airbnb investments, longer term rentals, and a new home specialist, so give me a call 702-353-3844

PATTY LINSON LICENSED SINCE 1988! BORN & RAISED..... A LIFETIME MEMBER OF THE VEGAS “GOOD OL’ BOY NETWORK!“

For 13 years, J. Nicole has been operating as a cosmetologist in the state of Nevada, but her motivation for making people their most beautiful self is rooted