Will the news coming out of the Fed yesterday spur more activity in the real estate market? With the Fed surprising nearly everyone by holding steady on the interest rate, this could go one of two ways. It could be the catalyst that gets buyers off the fence and out shopping for homes, or it could result in buyers thinking they have all the time in the world to buy.
Las Vegas area home sales were down roughly 5% for December while both buyers and sellers sat scratching their heads, uncertain as to their next move. While sales have slowed and many sellers have dropped their prices, that doesn’t equate to prices falling – prices are increasing, but at a slower pace than 2018.
Prices are still up 9% year over year for December. According to SalesTraq, inventory over the past 4 months is still at 3.3% in Vegas. The healthier inventory is helping to curb the rapid price increases.
(Credit SalesTraq)
Prices are expected to rise 4.9% across the country in 2019. That’s a national projection; as I always say, real estate is local. Las Vegas area prices are projected to rise 7.9% in 2019. I tossed out my crystal ball in 2008 – but I’m still certain if the pace of sales pick up enough, we could see prices rise even higher than many experts predict today. After all, sellers generally react to what buyers are doing. It’s that supply and demand thing.
So is it a good time to buy, or is it wise to wait? If interest rates remain relatively steady, buyers sitting on the fence are still going to pay more for the same house if they wait to buy. And those buyers will lose out on building that equity in their home that increases their net worth. At 7.9%, Joe Buyer spending $500,000 on a home today would pick up $39,500 in the first year if the 7.9% holds true. That’s a chunk of change, and a good return on investment on a 20% down payment.
The good news is no increase in the interest rates this month. The great news is that future increases in 2019 are no longer a certainty; the Fed has decided to exercise patience.
For December, the average sales price of residential properties including vacant land rose from $305,283 to $307,042 per the MLS. Real estate always appreciates over time. Buy low, sell high. Or just buy low and brag to your friends as your net worth increases from your real estate. I LOVE real estate.
Coming in 2020
According to the Las Vegas Review Journal the World Market Center will add 315,000 s/f of additional downtown convention space. This convention space will accommodate community events and trade shows that no longer use Cashman Center for their events.
(The first day of the Las Vegas Market at the World Market Center in Las Vegas. Sunday. Jan 27. 2019 Rachel Aston/Las Vegas Review-Journal)
The new convention center will be more than 3 times the size of Cashman Center. More events near Symphony Park will equate to more customers for local hotels, restaurants and businesses in DTLV. Best of all, those godawful big white tents you see from the highway are going away!
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