It’s the middle of the summer. National economists are actually talking about rapidly approaching the “end of the recession”- perhaps even within the next three to six months… Interest rates are phenomenal- at all times lows even, but there’s also a lot of buzzing about them rising. Las Vegas home sales are seeing the numbers increase week after week- some of the largest sales numbers we’ve ever seen here in the valley!
So where are we at in the Las Vegas Valley Real Estate World? I always say that the old crystal ball is broken (it still is, by the way)-
BUT something is definitely happening.
Everyday real estate conversations with everyday people have changed. I remember when I was discussing the Las Vegas housing market with folks in previous months and everyone I spoke with had a scowl. The market, in their eyes, flatly stunk. But something is different now.
People understand that although their home may have lost equity (as it more than likely did, by a whole lot, for many), that if they or someone they know is in the marketplace to actually PURCHASE, well then, they better hurry up. And as for Sellers, many of them are understanding that if they actually want to SELL their home in Las Vegas or the surrounding areas, then they’ve got to compete with the Bank Owned Foreclosures and Short Sales. Price is the driving force in this Las Vegas “Buyers Market”, and tell you what, I think more and more people are getting it now.
We all watched it go up.
Up, up and up.
Then, BANG! We watched in disbelief as it took a crashing fall. The climb back up that hill is definitely a steeper, more painful one, however we have on our hiking shoes and we’re walking! HELLO! WE ARE WALKING!
I still hear, on a pretty regular basis, from those people who are going to “wait it out for just a bit more”. My advise to them:
Be careful what you wait for…
Even if pricing was to continue to decline, these marvelous rates we have today just may rise & you could actually be shooting yourself in proverbial buyers foot.
*Here’s a quick scenario for you:
Today’s purchase price for the home of your dreams: $150,000
and Today’s Interest Rate: 5.250%
Your typical 5% Down Payment: $7,500
Your Loan Amount: $142,500
Your Monthly Investment (payment): $786.89
*payment based on loan amount only. Does not include insurance & taxes.
*Scenario #2: So you want to wait to see how low prices will go- now your faced with a possibility of the higher interest rate- we’ll call it 6.5% (by all means, still a great rate, right?):
You just knew they’d go down- good thing you waited!!! (wasn’t it?)
Your REDUCED purchase price for the same home $142,500
(based on a 5% drop from today’s current pricing)
Your New Interest Rate: 6.5%
(keep in mind, 6.5% is a good rate, rates
could possibly jump even higher- thus a
higher payment…)
Your 5% Down Payment:: $7,125
Loan Amount: $135,375
Monthly Investment (payment): $855.66
*payment based on loan amount only. Does not include insurance & taxes.
So, that means you could possibly SAVE $68.77 or MORE per month by purchasing NOW?!
Which scenario works better for you?
And what if …. prices don’t decrease another 5%… or rates go higher than 6.5%?
Hmmm…. Just a little Real Estate food for thought.
Talk Soon,
Heidi Griffith
Your Las Vegas Realtor ®
Realty One Group
702-540-0420
E-Mail Heidi
VISIT MY WEBSITE!
The median price of a Single Family Home in Las Vegas is hovering right around $140,000 right now.
