Las Vegas Real Estate – August 26, 2010

How is the Las Vegas Market Doing?

This is the most frequently asked question on just about any given day of any given year but this year is significant with all of the regulatory changes, stimulus incentives and financing conditions that have come our way in 2010. At the end of the day having the regulations in place will benefit all parties involved in the home selling or buying process and that of course helps the overall economy so we can have some confidence in that. The stimulus incentive for first time home buyers proved to be a positive driving force in the first part of the year of which with most of my buyers they spent that money either to pay down debt or in the market place to update and furnish their homes. So, in the end that was a good thing that came and went.

So what now?

If this economy is the “perfect storm” then it is also the “perfect spring day” for those who are prepared and interested in focusing on the positive. At no time in history have we seen both the interest rates at an all time low along with the home prices.  With regulations, pre-payment penalties are a thing of the past and predatory lending is being watched like a hawk with severe and swift penalties giving consumers the confidence to invest in real estate once again. We have been seeing a lot of this in 2010 with closing costs being paid by the Seller’s and New Home Builders throwing out their red carpets with huge incentives and lowering their prices to compete with the Resale Market. Buyers should make sure they are with an agent who has experience in selling New Homes and relationships with those builders and not entering the New Home Tracks alone to ensure they are getting the best deal. Remember the agents on the New Home Tracks work for the best interest of the Builder “not” the Buyer.

What about for investors?

Again, an excellent time to invest in real estate with low interest rates and demand for rental homes is pushing up the rental rates. In most cases investors are netting a profit from the beginning and in some areas renting for double their mortgage payment. What is the downside? Investor loans are much more difficult now with a minimum for most lenders of $70,000 loan amount, 20% down, 2 months mortgage reserve for any currently owned property and 6 months mortgage reserve for investment property being purchased.  But of course cash is king and the investor can avoid all the red tape.

This week’s conclusion is, as bad as the economy collapsed it has forced us all to learn to save like our grandparents did, plan like our parents did and eventually we will prosper as we all thought we did in 2005. This time we won’t be financed to the hilt instead have a good business plan moving forward and a backup plan for any possible setbacks that lay ahead. Today is the day to start thinking of the future, formulating a plan and executing that plan so get your team of professionals in place to guide you. Feel free to email or call me with questions or comments. I am a Full Service, Full Time REALTOR® specializing in Listings, Short Sales, Buyer Representation in all areas including New Homes.

As always it is my pleasure to be of service to you,

Heather Etchings, REALTOR® 
Realty One Group
Proud Recipient of the Las Vegas Chamber of Commerce "Customer Service Excellence Award"