Las Vegas Real Estate Blog

Has Las Vegas Surpassed Post-Recession Home Prices in 2018

4 Reasons Why Today’s Housing Market is NOT 2006 All Over Again Las Vegas Home Prices Pre Recession SeeVegasHomes

With home prices rising again this year, some are concerned that we may be repeating the 2006 housing bubble that caused families so much pain when it collapsed. Today’s market is quite different than the bubble market of twelve years ago. There are four key metrics that explain why:

  1. Home Prices
  2. Mortgage Standards
  3. Mortgage Debt
  4. Housing Affordability

1. HOME PRICES

There is no doubt that home prices have reached 2006 levels in many major markets across the country, but Las Vegas is not there yet. As of May 2018, we are now at a median sales price of $289,000 - we are still below the peak of $315,000 in mid-2006. However, after more than a decade, home prices should be much higher based on inflation alone.

Frank Nothaft is the Chief Economist for CoreLogic (which compiles some of the best data on past, current, and future home prices). Nothaft recently explained:

“Even though CoreLogic’s national home price index got to the same level it was at the prior peak in April of 2006, once you account for inflation over the ensuing 11.5 years, values are still about 18% below where they were.” (emphasis added)

2. MORTGAGE STANDARDS

Some are concerned that banks are once again easing lending standards to a level similar to the one that helped create the last housing bubble. However, there...

Hope Brings You Home: Southern Nevada's Newest Downpayment Assistance Program

Hope Brings You Home is a new down payment assistance (DPA) program starting May 1, 2018. This program is available in much of southern Nevada and providing an incentive to qualified homebuyers to purchase a primary residence in the following specific zip codes in Las Vegas, North Las Vegas and Henderson: 

Hope Brings You Home Downpayment Assistance Nevada Hardest Hit Fund SeeVegasHomes

Las Vegas: 89101, 89102, 89103, 89104, 89106, 89107, 89108, 89109, 89110, 89115, 89118, 89119, 89120, 89121...

A Tale of Two Markets [INFOGRAPHIC]

Two markets inventory demand SeeVegasHomes

Some Highlights:

  • A trend that has been emerging for some time now is the contrast between inventory & demand in the Premium & Luxury Markets vs. the Starter & Trade-Up Home Markets and what that’s, in turn, doing to prices!
  • Inventory continues to rise in the luxury & premium home markets which is causing prices to cool.
  • Demand continues to rise with low inventory in the starter & trade-up home markets, causing prices to rise!
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VA Loans by the Numbers - Spring 2018 [INFOGRAPHIC]

VA Loans By The Numbers Spring 2018 Las Vegas

Some Highlights:

  • Since the creation of the VA Home Loans Program, 22 million veterans have been able to achieve the American Dream of homeownership.
  • In 2017, $188 billion was loaned to veterans and their families through the program.
  • VA Purchase Loans are on the rise - on the West Coast, Las Vegas, NV and Arizona top the list.
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Legends Condos - Las Vegas Spring Sales 2018

Legends Condos Lone Mountain Las Vegas NV 89129 SeeVegasHomes

As of April 4, 2018, 8 condos have sold so far in 2018 in the Legends Condos in Las Vegas, NV 89129. The average days on market in Legends is now just 6 days! Condos not selling in a week are the anomaly! 

According to the Greater Las Vegas Association of Realtors, this is the lowest our condo inventory has been since 2004 – which puts condo sellers in Las Vegas in a very favorable position.

The highest sales price in Legends, so far in 2018, is $185,000 - this is an increase from 2017's highest priced sale of $175,000. 

If you are curious as to what your Legends condo is worth, please enter your address below to get a free home value estimate today!

Stay up to date with the latest sales and listings in Legends here.

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The Cost of Renting vs. Buying Today 3.30.18 [INFOGRAPHIC]

The Cost of Renting vs. Buying Today 3.30.18 [INFOGRAPHIC]

Some Highlights:

  • Historically, the choice between renting or buying a home has been a tough decision.
  • Looking at the percentage of income needed to rent a median-priced home today (28.9%) vs. the percentage needed to buy a median-priced home (15.7%), the choice becomes obvious.
  • Every market is different. Before you renew your lease again, find out if you can put your housing costs to work by buying this year!
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Spark a bidding war on your Las Vegas home!

Spark a bidding war on your las vegas home seevegashomes

Spark A Bidding War

Ready to make a move? Have a certain figure in mind that you need to sell for? Depending on your market, you might be able to get a little more than what you may be needing. Go over with your agent if setting a bidding war is smart for the sale of your home, and if they give the green light, here are a few things to consider to help get your sales price over asking after starting a bidding competition. 

 

1. ATTRACT MORE BUYERS

When there isn't much interest in a property, buyer's get nervous and suspicious that there may be something wrong with the home that they may be missing, and that could sometimes be further from the truth. You want to price your home competitively to entice more showings. When you price your home right under the market standard, it leads to more showings, more appointments, and more excitement around your home. 

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Moving up Is MORE Affordable Now (2018) Than Almost Any Other Time in 40 Years

Outgrown home move up seevegashomesIf you are considering selling your current home, to either move up to a larger home or into a home in an area that better suits your current family needs, great news was just revealed.

Last week, Trulia posted a blog, Not Your Father’s Housing Market, which examined home affordability over the last 40+ years (1975-2016). Their research revealed that:

“Nationally, homes are just about the most affordable they’ve been in the last 40 years… the median household could afford a home 1.5 times more expensive than the median home price. In 1980, the median household could only afford about 3/4 of the median home price.

Despite relatively stagnant incomes, affordability has grown due to the sharp drop in mortgage rates over the last 30 years – from a high of over 16% in the 1980s to under 4% by 2016.

Of the nation’s 100 largest metros, only Miami became unaffordable between 1990 and 2016. Meanwhile, 22 metros have flipped from being unaffordable to becoming affordable in that same time frame.”

Here is a graph showing the Affordability Index compared to the 40-year average:

Home Affordability Chart 2018

The graph shows that housing affordability is better now than at any other time in the last forty years, except during the housing crash last decade.

(Remember that during the crash you could purchase...

7 Factors to Consider When Choosing A Home to Retire In Las Vegas, NV

Factors to consider when choosing retirement home seevegashomes

As more and more baby boomers enter retirement age, the question of whether or not to sell their homes and move will become a hot topic. In today’s housing market climate, with low available inventory in the starter and trade-up home categories, it makes sense to evaluate your home’s ability to adapt to your needs in retirement.

According to the National Association of Exclusive Buyers Agents (NAEBA), there are 7 factors that you should consider when choosing your retirement home.

1. Affordability

“It may be easy enough to purchase your home today but think long-term about your monthly costs. Account for property taxes, insurance, HOA fees, utilities – all the things that will be due whether or not you have a mortgage on the property.

Would moving to a complex with homeowner association fees actually be cheaper than having to hire all the contractors you would need to maintain your home, lawn, etc.? Would your taxes go down significantly if you relocated? What is your monthly income going to be like in retirement?

2. Equity

“If you have equity in your current home, you may be able to apply it to the purchase of your next home. Maintaining a healthy amount of home equity gives you a source of emergency funds to tap, via a home equity loan or reverse mortgage.”

The equity you have in your current home may be enough to purchase your retirement home with little to no mortgage. Homeowners in the US ...

The Difference an Hour Will Make This Spring 2018 [INFOGRAPHIC]

The difference an hour makes 2018Some Highlights:

  • Don’t forget to set your clocks forward this Sunday, March 11th at 2:00 AM EST in observance of Daylight Saving Time.
  • Unless of course, you are a resident of Arizona or Hawaii!
  • Every hour in the United States: 614 homes are sold, 81 homes regain equity (meaning they are no longer underwater on their mortgage), and the median home price rises $1.51!
...

4 Reasons to Sell Your Las Vegas Home This Spring [INFOGRAPHIC]

4 reasons to sell home spring 2018 las vegas seevegashomes

Some Highlights:

  • Buyer demand continues to outpace the supply of homes for sale which means that buyers are often competing with one another for the few listings that are available!
  • Las Vegas housing inventory is still under a 2-month supply.
  • Perhaps the time has come for you and your family to move on and start living the life you desire.

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It’s Tax Season… Use Your Refund to Jump Start Your Down Payment Savings!

According to data released by the Internal Revenue Service (IRS), Americans can expect an estimated average refund of $2,840 this year when filing their taxes. This is down slightly from the average refund of $2,895, last year.

Tax refunds are often thought of as ‘extra money’ that can be used toward larger goals; for anyone looking to buy a home in 2018, this can be a great jump start toward a down payment!

The map below shows the average tax refund Americans received last year by state. (The refunds received for the 2017 tax year should continue to reflect these numbers as the new tax code will go into effect for 2018 tax filings.)

Average Tax Return by State Downpayment Las Vegas SeeVegasHomes

Many first-time buyers believe that a 20% down payment is required to qualify for a mortgage. Programs from the Federal Housing Authority, Freddie Mac, and Fannie Mae all allow for down payments as low as 3%, with Veterans Affairs Loans allowing many veterans to purchase a home with 0% down.

If you started your down payment savings with your tax refund check this year, how close would you be to a 3% down payment?

The map below shows what percentage of a 3% down payment is covered by the average tax refund by taking into account the median price of homes sold by state.

Tax refund used for downpayment home seevegashomes

The darker the blue, the closer your tax refund gets you to homeownership! For those in Alabama looking to...

Mortgage Rate Increases February 2018

Mortgage interest rates have already risen by over a quarter of a percentage point in 2018. Many are projecting that rates could increase to 5% by the end of the year.

What impact will rising rates have on house values?

Many quickly jump to the conclusion that an increase in mortgage rates will have a detrimental impact on real estate prices as fewer buyers will be able to qualify for a loan. This seems logical; if there is less demand for housing then prices will drop.

However, in a good economy, rising mortgage rates increase demand as many prospective purchasers immediately jump off the fence to guarantee they get the lower rate.

Let’s look at home prices the last four times mortgage rates increased dramatically.

Dramatic Mortgage Rate Increases History SeeVegasHomes


Mortgage Rates on FIRE! Home Prices Up in Smoke?

Mortgage Rates on FIRE! Home Prices Up in Smoke? | MyKCM

Mortgage interest rates have already risen by over a quarter of a percentage point in 2018. Many are projecting that rates could increase to 5% by the end of the year.

What impact will rising rates have on house values?

Many quickly jump to the conclusion that an increase in mortgage rates will have a detrimental impact on real estate prices as fewer buyers will be able to qualify for a loan. This seems logical; if there is less demand for housing then prices will drop.

However, in a good economy, rising mortgage...

Should I Wait Until Next Year to Buy? Or Buy Now? [INFOGRAPHIC]

Cost of waiting to buy a home winter 2018 SeeVegasHomes

Some Highlights:

  • The Cost of Waiting to Buy is defined as the additional funds it would take to buy a home if prices & interest rates were to increase over a period of time.
  • Freddie Mac predicts interest rates to rise to 5.1% by 2019.
  • CoreLogic predicts home prices to appreciate by 4.3% over the next 12 months.
  • If you are ready and willing to buy a home, find out if you are able to!

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Where Are Mortgage Interest Rates Headed in 2018?

Where are interest rates headed winter2018 SeeVegasHomes

The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the rate the greater the payment will be. That is why it is important to know where rates are headed when deciding to start your home search.

Below is a chart created using Freddie Mac’s U.S. Economic & Housing Marketing Outlook. As you can see, interest rates are projected to increase steadily over the course of the next 12 months.

Winter 2018 Mortgage Interest Rate Predictions SeeVegasHomes

How Will This Impact Your Mortgage Payment?

Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly.

According to CoreLogic’s latest Home Price Index, national home prices have appreciated 7.0% from this time last year and are predicted to be 4.2% higher next year.

If both the predictions of home price and interest rate increases become reality, families would wind up paying considerably more for their next home.

Bottom Line 

Even a small increase in interest rate can impact your family’s wealth. Let’s get together to evaluate your ability to purchase your dream home....

5 Reasons to Love Using A Real Estate Pro [INFOGRAPHIC]

5 reasons to love realtor

Highlights:

  • Hiring a real estate professional to guide you through the process of buying a home or selling your house can be one of the best decisions you make!
  • They are there for you to help with paperwork, understanding the process, negotiations, and helping you with pricing (both when making an offer or setting the right price for your home).
  • One of the top reasons to hire a real estate professional is their understanding of your local market and how the conditions in your neighborhood will impact your experience.

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Las Vegas Housing Inventory Crunch Continues… List Your House Today!

Las Vegas Housing Inventory Crunch Continues… List Your House Today!

Every winter, families across the country decide if this will be the year that they sell their current houses and move into their dream homes.

Mortgage rates hovered around 4% for all of 2017 which forced many buyers off the fence and into the market, resulting in incredibly strong demand RIGHT NOW!

At the same time, however, inventory levels of homes for sale have dropped dramatically as compared to this time last year.

Trulia reported that “in Q4 2017, U.S. home inventory decreased by 10.5%. That is the biggest drop we’ve seen since Q2 2013.”

Here is a chart showing the decrease in inventory levels by category:

Change in Las Vegas housing inventory 2017

The largest drop in inventory was in the starter home category which saw a 19% dip in listings.

Bottom Line

Demand for your home is very strong right now while your competition (other homes for sale) is at a historically low level. If you are thinking of selling in 2018, now may be the perfect time.

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Nevada tops list of states Americans are moving to in 2017

Where Did Americans Move in 2017? [INFOGRAPHIC]

Nevada Tops List of States Americans Are Moving to 2017 SeeVegasHomes

Some Highlights:

  • Atlas Van Lines recently released the results of their annual Migration Patterns Survey in which they tracked their customer’s movement from state-to-state over the course of 2017.
  • Idaho held on to the top spot of ‘high inbound’ states for the 2nd year in a row followed by Washington.
  • The ‘outbound’ states seem to draw a line straight across the country from Connecticut to Wyoming.
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