What Does Investors Retreating From The Market Mean To Las Vegas
What Does Investors Retreating From The Market Mean To Las Vegas
UH OH - we are heading away from our sellers market into more traditional - however if inventory continues to rise with less sales - Folks we are headed into a buyers market!!!
What that may mean for sellers - more realistic pricing... no more multiple offers - prices are aiming lower.. possible underbids...
Buyers - NOW is the time to buy!!!!!
Interesting article from Eli and LVRJ on vegas market.. read below.
For awhile since LV economy crashed, it helped resurrect our housing market with sorely needed spending. But with the economy healing and sales prices higher, many of those investors have been packing their bags — and their exit is causing a big slowdown in business.
the valley, listings of previously owned homes increasingly are being
ignored, sales volume is dropping and prices aren’t climbing nearly as
fast as a year ago, all while the share of cash buyers has plunged. Investors snapped up homes to turn into rentals, and their buying frenzy pushed up housing values
at one of the fastest rates nationally, helping numerous homeowners
escape underwater status.
Still, their pullback could in some ways be
good for Las Vegas’ volatile housing sector.They’re slowing a
market that got so heated with spending that insiders feared another
bubble was forming. The slackened competition also gives locals — who were elbowed aside the past few years by investors’ barrage of bids — a better chance at buying a place.
are slowing nationally, too. U.S. home prices in August were up 5
percent year-to-year, down from about 13 percent annual growth in August
2013, according to the closely watched S&P/Case-Shiller indices.
transition from a heated market to a slower and steadier one is “great
news” and could draw younger, first-time buyers, according to Stan
Humphries, chief economist at housing-data firm Zillow. “In housing, boring is better,” he said. Locally,
some 34 percent of homes that sold in September went to cash buyers.
That’s near a five-year low and well below a peak of almost 60 percent
in early 2013, indicating a steep drop in investor spending, according
to the Greater Las Vegas Association of Realtors.
they back out, the number of single-family homes listed for sale but
without offers has more than doubled the past two years, to about 8,200
as of September. That’s according to data from the GLVAR’s listing
service, which mostly has previously owned homes. All told,
roughly 22,300 single-family homes on the listing service were sold this
year through September, down 13 percent from the same period last year.
key reason for the ignored listings is the investor pullback, but
another is that homeowners, emboldened by the run-up in values the past
few years, are overpricing and not getting bites. The
median sales price for a single-family home in September was $202,500,
up 12.5 percent from a year earlier — but the median price then was up
29 percent from fall 2012, according to the GLVAR. Despite
the slower growth, many homeowners expect values to keep soaring at an
eye-popping pace, and they want to sell for much more than their homes
“There are a lot of unrealistic sellers,”Buyers also are taking more time to find a house as they pay closer attention to properties’ conditions. When
foreclosed homes and short sales dominated the market the past few
years, buyers assumed a house would have to be fixed up and weren't
fazed by its disrepair.
As investors pull back, the
days of almost every listing getting multiple offers have largely faded.
Buyers don’t feel as much pressure to take whatever house they can get,
even if it’s beat up. “People are now expecting homes to be in better shape,” Brownell said.
the market has improved considerably from the depths of the recession,
thanks in big part to the investors, but things are by no means
problem-free. Banks aren’t targeting delinquent homeowners nearly
as often as last year, though Nevada still had the fourth-highest
foreclosure rate in the country last quarter, according to RealtyTrac. The
rate of underwater borrowers — people whose mortgage debt outweighs
their home’s value — also has plunged, but Las Vegas’ current rate of
27.4 percent remains second-highest among major metro areas, according
to Zillow. And while locals face less competition to buy a house,
that doesn’t mean they can afford one.
Author:Ivy Beller Phone: 702-526-2298 Dated: October 29th 2014 Views: 966 About Ivy: Over 17 years experience in residential sales, land, multifamily and commercial. Director of sales ...
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