Several experts have weighed in recently on the state of the Las Vegas real estate market, and the consensus seems to be that the future looks bright. As an added bonus…the future may not be very far away.
The first piece of good news came from Lawrence Yun, the chief economist for the National Association of Realtors (NAR) who spoke Monday to the NAR Rocky Mountain Regional Conference at Green Valley Ranch Resort. Yun stated that he believes the worst is over in Las Vegas. After seeing prices fall nearly $10,000 per month in the Las Vegas Valley over the last 18 months, Yun believes that home prices will stablilize in the last half of 2009. He even stated that he would not be surprised to see appreciation of as much as 5% in Las Vegas in 2010.
The sharp declines in home prices that have plagued the Las Vegas Valley of late are the very thing that will pave the way for recovery. Yun believes that low prices and the recently approved $8000 tax credit for new home buyers will help fuel the rise in home sales that we are already seeing in Las Vegas. In 2008, every state in the U.S. saw a decline in home values, but only California, Nevada, and Arizona saw a big jump in sales. “$150,000 is very affordable for such a dynamic metropolitan region, once the economy recovers, you are in good shape,” said Yun.
Las Vegas has a lot of positives boosting its long term outlook. The first group of baby boomers officially hits 65 on January 1st of 2011. Las Vegas will be the hottest city in the nation for retirees looking to permanently relocate to warmer climates, families relocating for better jobs, vacation and second home buyers. The low current prices in Las Vegas combined with the warm weather, favorable tax structures, and low cost of living will all help Las Vegas to regain the top spot it occupied over 20 of the last 22 years as the fasting growing city in America.
Glenn Plantone, a realtor, foreclosure expert and full time real estate investor living in Las Vegas, says that his recent personal experience is in line with Yun’s claims. Plantone has been dealing with real estate investors for years and has seen a dramatic increase in sales in the Las Vegas market in 2009. Of the nearly 20 deals Plantone has brokered over the last few months, all but 3 have been all-cash purchases by investors. “Prices on condos are as low as $45,000 and small 3 bedrooms homes have dropped into the $70’s from highs near $300,000 just a few years back,” Plantone says. “Most of the sales I have pending are averaging from 25-35 cents on the dollar from previous highs and the properties are cash flowing very strongly.” Plantone believes that this strong cash flow opportunity is what is driving local and out of state investors back into the Las Vegas real estate market. Plantone has personally met with 5 Canadians and 4 California investors this week alone.
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