Flat Period in Prices Showing Las Vegas Market Healing
The wild and wooly roller coaster ride that Las Vegas real estate has been on over the last decade has seemed to get a little smoother over the last year. Prices of homes have stayed at approximately $220,000 since June 2015 and while this is still up year to year, it is a flat period that is good for buyers, rather than sellers.
What Does This Mean?
While this may not seem like a good thing, industry analysts have said that this flat trend points toward a more stable and normal market. Sellers are not a fan of the flat home price trend, but in the long run, it will be a good thing that can help the market as a whole. Prices have increased at a rate much higher than normal over the last few years, so the slowdown is a good sign that the economy is getting to a more normal level.
Housing sales are no longer dominated by the sale of distressed properties, which has been the case. This means that the median sales price will stay at a more normal level, rather than being decreased drastically with short sales for much less than the value of the home.
Benefits of a Flat Period for Buyers
There are some benefits for buyers during the time of flatness in median home prices. One is that they will have more time to save up for a down payment. This was not the case earlier, simply because home prices could go up out of your budget if you had to wait. This period allows for more sustainable home sales in the future, which can help the entire market to come back from the downturns that it had years ago.
Flat Period Not Great for Sellers
While it is a good thing for the buyers, sellers may find the flatness to be a bit challenging. This could mean that they have to create competition to get the seller to look at their home. This could be through spending more money to update and renovate, or it could mean being more competitive with your price. This is not a good thing if you want to sell your home quickly.
While there is still a lot that can be better with the Las Vegas real estate market, the signs all point toward a healing market. Job growth is increasing, mortgage lending restrictions are starting to ease up, and tourism is increasing, which are all signs of a housing market becoming more normal and more level.