The Good and Bad of the Real Estate Market
When looking at real estate across the nation, there are a few things that you notice about the market. Some are good and some are bad, but they are important to know, as it affects the housing market as a whole in Las Vegas.
Good News in the Real Estate Market
There are some really good signs in the real estate market and these give homebuyers, sellers, and realtors hope that the market is going to come back. Mortgage rates are at historic lows, which makes home ownership more affordable. Unemployment is at its lowest point in eight years as well, which means that more people are working and, thus, may be able to afford a home.
Bad News in the Real Estate Market
With the good, you have to take the bad. This includes the housing market inventory, which is somewhat low, especially in homes at the lower end of the price spectrum. In addition, some markets are becoming less affordable when compared with historical prices, which means that first time home buyers will feel torn about whether it is a good time to buy a home or not. These first time buyers accounted for less than 1/3 of the home purchases in 2015, which the lowest number in almost 30 years.
Some Markets Very Competitive
One buyer in Plano, Texas has been trying for over two months to buy a home. She has been outbid at every attempt, until she decided to offer more than the asking price. Homes are being sold in just days, rather than weeks or even months, which means that home buyers need to be ready to make an aggressive offer of the asking price or even above in some cases.
In US counties with more than 100,000 people, homes are less affordable than they were just a year ago. RealtyTrac analyzed the information and found that home prices are outpacing wage growth in the large majority of these counties. This means that fewer people can afford to buy. “Inventory is very restricted, which is creating bidding wars and pushing up prices,” said Daren Blomquist, a senior vice president at RealtyTrac. “That makes it a very tough environment for many buyers.”
Las Vegas is not a market that is having supply issues, but it is still healing from the housing market downturn, as it was one of the markets most affected. “This is the classic financial cycle,” said Klif Andrews, Las Vegas division president for builder Pardee Homes. Markets such as Las Vegas “ran the hardest and the highest, and they over-corrected. Now they’re trying to get back to a normal level.”