THE ADAMS TEAM
Rothwell Gornt Companies
Las Vegas Real Estate Agent Robert Adams Las Vegas Real Estate Blog
I saw a Realtor stating that the Las Vegas Real Estate Market is NOT in a "bubble" like in 2008. Below is my response.
"I agree that the market is completely different than in 2008 (as we are not nearly as leveraged as we were, buyers now have skin in the game in regards to down payments, most investment properties create positive cash flow vs 2008's negative cash flow appreciation game, and a lot more properties are owned out right vs financed) but there is no arguing that inventory has been rising week after week for months and continues to rise. Buyer demand has also cooled off. With the holiday season quickly approaching I don't see demand picking up anytime soon either. CAP rates have decreased from around 12% to about 4% on most rental properties. Bidding wars are gone. Median home prices have remained flat for 3 consecutive months. If the hedge funds that are in "holding" patterns decide to liquidate their portfolio we will see a selling frenzy. Price reductions are abundant. Higher co-ops and incentives are being advertised, etc. All these are signs of a softening market. I agree we are not in a bubble but the market is softening and buyers need to buy smart and calculate for such conditions. This is where a good real estate agent can assist their clients in planning their successful financial future. Hope this is informative the buyers out there."
If you are currently looking to buy in the Las Vegas area let us help guide you through this ever changing market. Let us know what type of property you are looking for via our Buyer's Form and we will help you create an investment strategy that meets your investment goals.
HAPPY FRIDAY EVERYONE!!
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