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Have you been thinking about buying a home in Las Vegas, but you aren’t sure that now is the best time? Then consider this:

Right now, if you buy wisely, you’re probably buying a house for less than it cost the builder to build it. It doesn’t take a genius to figure out that that state of affairs isn’t sustainable. When it costs a builder more to build a house than a buyer is willing to pay for that house, builders simply stop building, which is largely what we’ve seen across the valley in the past couple of years. But people are still moving here at a rate of thousands per month.

For most of this year, the Las Vegas market has been experiencing steadily increasing sales. We were out yesterday in areas where realtors are telling us they’re getting multiple offers on their listed homes. Some are even selling above their listed price! This is a big change from even three months ago. The inventory is there and prices are still low, but numbers of sales are going up.

However, many prospective buyers are still “waiting for the market to bottom out.” Unfortunately you can’t ever know when the market is bottoming out. You will only know afterwards, when you see the prices going up again!

Also, mortgage rates are low at present, but we all know that we’re entering a period of high inflation, which means interest rates are going to go up. There’s no getting away from that fact. And a higher interest rate can mean the house ends up costing more even if the actual sales price was lower!

What all this tells us is that, if you’re thinking of buying and you don’t buy now, you’re going to be one of those people left standing on the sidelines saying, “I wish I’d bought in 2008 when the prices and the interest rates were so low!”

Real Estate Investment