Prices are starting to slow down for Las Vegas, which is a complete opposite to what we witnessed last year, when prices drastically rose 35
% up to 40%. GLVAR (Greater Las Vegas Association of Realtors) President Heidi Kasama said, “It was only a matter of time before we stopped seeing home prices by double-digit percentages.”
RealtyTrac reported that during the second quarter, 50% of home sales in Sin City were cash sales, while the national trend for cash sales was only at 38%. Vegas cash sales were ranked the 7th highest in the country. But as the year nears its close, we see these cash deals slowly dwindling away.
These trends definitely show that the Vegas housing market is ricocheting after the hard hit of 2008. Randy Char, VP of One Queensridge Place said, “It’s a phenomenal sign to see cash purchases because obviously what that shows is consumer confidence, investor confidence into the future of Las Vegas and being bullish about the overall market.” It was also reported that Las Vegas ranked second-highest when it comes to institutional investors, pegged at 14.4%. Atlanta was the highest at 15.6%.
Daren Blomquist, RealtyTrac CEO said, “The flurry of purchases by institutional investors and other cash buyers that kicked off two years ago when U.S. home prices hit bottom is finally showing signs of subsiding.”
The Good and The Bad
Blomquist further explained, “The good news is that fewer cash buyers should help loosen up inventory of homes for sale and reduce competitive bidding, giving first time homebuyers and other non-cash buyers more opportunities. The bad news is that some of those first time homebuyers and other non-cash buyers already be priced out of the market thanks to the rapid run-up in home prices over the past two years in many areas.”
Fortunately, there are still many areas in Vegas that are selling below replacement cost and we know where they are. If you’re looking to buy a home here in Vegas and you need help finding your ideal home, reach out to us. Our team driven real estate professionals know the Vegas area like the back of their hands; we know where to find the home of your dreams. Contact us today!