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Las Vegas Real Estate Blog

Your Las Vegas real estate information source. The latest news, new construction, scandals, additions to the strip and other Las Vegas and related information.

Saturday, March 31, 2012

Las Vegas Real Estate Market Hits Bottom

For those of you that have been sitting on the fence, waiting for the Las Vegas real estate market to hit "bottom", that moment has finally come. Unfortunately, if you were waiting for it to buy a home in Las Vegas or Henderson, good luck getting one.

Over the last 18 months or so, investors have been buying up discounted properties all over the valley. Why? Because the cost of the property versus renting that same property made it a good, sound business investment that would turn an immediate profit on the investment. In other words, it would be cheaper to buy a home than it would be to rent that same home.

Of course, that isn't true in every part of the Las Vegas valley. For example, a good friend of mine bought a house in Centennial Hills last year. His mortgage payment, including taxes and insurance costs him a little over $900 a month. Originally, when he decided to move from his condo in Boulder City to be closer to his job in North Las Vegas, he was going to rent a house. He found the same model home he ended up buying available for rent, for $1,150 per month.

Now you won't find the same thing in some of the luxury communities, like Lake Las Vegas real estate for example. While prices for condos and homes in Lake Las Vegas are heavily discounted like other areas of the valley, the HOA fees have not gone down at all. So even though you can get a Lake Las Vegas condo for $150,000 that originally sold for over $400,000 new, the HOA dues are still several hundred dollars a month.

Going back to the title of this post, the reason why I feel the market has bottomed out is a result of the above mentioned investor frenzy over the last year and a half, and the new law that was passed regarding foreclosures. Nevada passed a law restricting banks from foreclosing on property without all of the necessary documents in order. They must prove the hold the note among other things, which has slowed down foreclosures significantly.

The end result is now it is common place to have multiple offers placed a property...not unlike the boom years of 2005 and 2006. Prices are creeping back up and we are on our way back to a normal market in a few years. Thanks for stopping by my Las Vegas real estate blog and check out our other site for the latest Vegas real estate news.


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