2009 was a year of expectations and a year of hopes. Some of these were met, some were exceeded, and others will wait and continue to seek fulfillment in 2010. We all knew that the foreclosure wave would continue to sweep over the nation’s beleaguered real estate markets. And it did. Las Vegas once again led the United States in foreclosures as more bank owned properties than ever flooded the market. We hoped that this influx of affordable properties would lure some investors back into the stagnant Las Vegas real estate market. But no one expected just how tantalizing that lure would be. As investors from California, Canada, and all over the world sought to purchase cheap Las Vegas real estate that was suddenly cash flowing positively for the first time in years, home sales in the valley boomed. Throughout the summer of 2009, Las Vegas posted sales numbers that exceeded those of the boom years in 2003 and 2004. As quickly as foreclosures re-entered the market, they were gobbled up in their REO form by eager investors cashing in on what had become the greatest real estate buying opportunity of our lifetime.
And we all hoped that this re-energizing of the real estate market would spread to the economy at large. It didn’t. To spite the high hopes of many generated by the seemingly endless stream of economic stimulus packages introduced by the new Presidential administration, an economic recovery failed to materialize and December saw some of the worst unemployment statistics since the recession began.
And yet, this bad news for the economy at large, may translate into good news for investors looking to purchase real estate in 2010. Normally, the excess of demand that we have been seeing in the Las Vegas market would push real estate prices higher. But the general economic downturn may curb those price hikes and keep properties in Las Vegas at their historically affordable levels through the next year. Especially for those willing to acquire properties through the trustee sale, properties that need a little work, or unconventional properties like high rise condos.
As the supply of turn key, single family REOs has dwindled over the latter half of the year, my investors have found that the best way to acquire profitable real estate in Las Vegas is to think outside the “herd.” We have been investing with great success in properties purchased through the trustee sale auction, high rise properties like the MGM Signature Condos, and properties that are not “turn key” such as “stripped” foreclosure homes. Since the vast majority of investors are not purchasing these types of properties, we are able to continue to get great deals on investments that will generate strong positive cash flow.
I look forward to 2010 as a year that will continue to allow my clients to purchase Las Vegas real estate at deeply discounted properties. Hopefully, the nation’s job, credit, and financial markets will begin a steady recovery and everyone can begin to benefit again from a robust economy. Until then, we are wise to once again remember the words of the great financial giant Baron Rothschild who made his fortune largely during the years of the Great Depression, he said, “Buy when there is blood in the streets...even if the blood is your own.” Now is truly the time to take advantage of every opportunity to create wealth for our future.
If you are interested in taking advantage of this historic opportunity to purchase great Las Vegas real estate, contact Glenn Plantone at 702-769-9872.
