Declining Foreclosures Push Home Prices to Rise in Las Vegas

These three graphs tell the tale of the Las Vegas real estate market the past few months.  As I mentioned before, the changes in bank regulations in the wake of AB284 have almost completely halted foreclosures in Las Vegas and, as a result, inventory has plummeted. This graph really shows you how dramatic and sudden this decline has been.

The next graph shows what inevitably happens when inventory goes down and demand remains steady...prices begin to climb.  You can see that after three plus years of a virtual plateau in the slightly downward direction, prices are beginning to rise.

Probably the most interesting graph to me is the final graph that illustrates the market action index.  This index evaluates a range of factors to determine whether a particular real estate market currently favors the seller (a sellers’ market) or the buyer (a buyers’ market.)  Traditionally an index score of greater than 30 indicates a market that is about to trend upwards in price, whereas if an index falls below 30 for a sustained period of time, home prices are likely in for a downward correction.  As you can see from looking at the graph, the market action index has just crossed the 30 point threshold for the first time since mid 2007, right before the real estate bubble burst.

Does all of this information mean that the time to buy investment real estate in Las Vegas has passed?  Are all the good deals gone and are investors priced out of the market?  No.  But the great deals have certainly become more difficult to find.  Potential investors are discovering that once plentiful REOs and foreclosures are now very difficult to find and the few that are available are being bid up in multiple offer situations.

At Team Plantone, we have built our business around adapting quickly to changing market conditions and always staying one step ahead of the trend.  We are currently finding great buys for our investors in certain niche areas of new construction, through builder close out packages, and by purchasing bulk deals directly from lending institutions.

The good news for investors in Las Vegas real estate is that the potential for appreciation is now very real as prices begin to creep back up.  If you are interested in buying investment real estate in Las Vegas...now is the time!  Call Glenn Plantone for more information on market conditions and how to maximize your investment dollar.