With 27,331 houses, condominiums and townhouses listed in the MLS today and 1,225 sales so far in August, who can find anything good to say about the Las Vegas/Henderson real estate market? Well, LasVegasHomeSpecialist, for one. Despite the fact that we’re supposed to have the highest foreclosure rate in the nation, the actual number of listings in the MLS on which foreclosure has been commenced is 1,007. The number of listings being offered as short sales is 2,376. While more difficult to ascertain exactly, there appear to be about 1,000 bank owned properties listed. That’s a total of 4,383 distressed properties out of that 27,331 number. While the standing inventory is high, the average number of homes for sale is typically 1% of the population. In a normal market, we should have about 19,000 listings in our MLS.
Despite predictions of plunging home values, we have yet to experience that fall. Average sales prices of existing homes increased 40% in 2004, 20% in 2005 and 4% in 2006. With real estate values traditionally increasing about 6% a year, there really is little surprising about these numbers. So far this year there’s been a little slippage – 2% in the last two months.
What happened when the stock market took a plunge yesterday? Investors bought. What should people do in a down real estate market. Buy.
Prices may continue to decline through this year. LasVegasHomeSpecialist predicts a decline of up to 10% over 2006 prices. Should you wait? This depends on whether you think the cost of borrowing money may go up. If it does, buying sooner rather than later makes sense.