Las Vegas Real Estate Talk!

[LyricB]

I'm wondering if it is more a seller's market right now or a buyer's market? My guess is a buyer's market, but I may be out of touch.

[eerie]

Las Vegas is completely a buyer's market. There are more houses on the market in Las Vegas now than ever before in history, I heard. That means more for the buyer to choose from - more seller's willing to come down in price or offer incentives.

Buyer's market - difinitely.

[kelkat]

It's the whole thing of supply and demand that we learning in economics.

For the last few years the interest rates have been supper low so lots of people could loans for lots of money making it easy for them to buy. That meant there were lots of buyers on the market - thus making it a sellers market.

Now the interest rates have creeped back up. Less people are willing to take the plunge. Fewer buyers out there which means there is no one buying the houses that are for sell. More houses for sell mean it's a buyers market.

Does that help any?

[eerie]

But as it applies to Vegas, it wasn't low interest rates that shot the demand through the roof and increased property values.

It was investor speculation. A false housing shortage.

[kelkat]

With people building like there's no tomorrow, how could anyone think there would be a housing shortage? I mean, eventually there will be a brand new house for every baby born. It's gotten out of hand!

[eerie]

Right, it was a false housing shortage. Buyers were on waiting lists for new developments that hadn't broke ground yet.

SAD.

[LeighA]

So now what happens to all the new empty houses? They just sit there and wait for an owner? Why don't the builder's just quit building? I would think the banks would stop loaning money to builder's whose houses don't sell.

[eerie]

If the builders need to sell the houses, they'll lower the prices, which means everyone will lower prices if they want to to sell.

Bad news for people who bought high - they will be upside down for years.

[SeeMe]

It is bad for the buyers who bought high. The builders can afford to take a hit on the profit of their spec homes, which means that their prices will be very low. That means that resale homes won't sell for high prices until the spec inventory is low.

[eerie]

Yes, and that will be a while.

Should be about two years.

[SeeMe]

It's interesting how the investors caused this problem throughout the west. It's all the people from California that were able to sell their houses and then pay cash for multiple houses in the western US.

[eerie]

Investors and greedy builders caused this false housing shortage in Vegas.

[SeeMe]

Yep.... it's the people from California that moved west. It inflated prices and now there are so many empty houses because you can't flip homes as quickly.