This LVRJ reporter must have read my blog – he’s definitely changed his “sky is falling” rhetoric. The only thing falling is sales. That isn’t the same as prices dropping.
Will prices drop? Who knows – I threw away my crystal ball in 2008, when nothing made sense in real estate. Reporters were writing stories about our 12 month+ inventory, when all that mattered was the 6-week inventory of the only homes that were selling – REOs. Sellers were so upside down that very few could do a traditional sale. You can list a $200,000 house for $400,000 but that isn’t going to sell in any market.
Sales should pick up when the Fed drops the rate soon, and remain steady until presidential candidates from both sides manage to undermine consumer confidence, pushing us to sit on the fence. Every four years we’re told that the economy is marvelous by the party in office, or it’s going to hell in a hand basket by the party seeking office. I’m over it!
If I did have a working crystal ball, I’d say that prices are going to remain steady for a bit. I am advising my buyers that this is probably a great time to buy, when there are more homes for sale than there are buyers, and mortgage rates are really low. If the Fed drops the rate by 1%, you can always refinance. But prices are likely to continue climbing, so sitting on the fence may mean you’re paying more for the home. Personally, I’d rather pay less for a home and refinance if rates drop.
I am advising my sellers to price realistically, and don’t feel they need to take a low ball offer; another buyer will come along. The sky isn’t falling – not today, anyway. Even the LVRJ is seeing that there is no reason for the doom-and-gloom in another of its recent articles.
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“I am advising my buyers that this is probably a great time to buy, when there are more homes for sale than there are buyers” —– Written like a true real estate agent.
I hope I sound like a true real estate Broker, too! I’ve been selling real estate for 20 years. I’ve been investing in real estate for 16 of those years, finally buying my first commercial property in 2015. I love real estate!
Given the ever increasing costs of living in California (government costs and taxes and housing), the huge stream of Californians moving to Las Vegas will not subside and will keep Vegas housing prices up and the housing market pretty solid. Hopefully the dramatic increase in pricing will level out to keep the market strong but not overpriced.
I can’t imagine a repeat of those dark days in 2007-2011. We’re almost back to 2006 prices, but on more solid ground thanks to tougher lending standards. For buyers, 2009-2011 was a great time to buy their 2nd home or retirement home. I had a lot of buyers in their mid-40’s buying retirement homes 20 years before they planned to retire – prices were that good.