Nevada is once again the fastest growing state!!! Arizona took that title the past two years.
The anticipation is being felt in the form of higher multi family building units being permitted as less people can get a loan to buy a home right now. I pull these statistics monthly and even though I know this, sometimes I don't feel this when I am working. There are markets that are moving right now and then there are others that are going to take longer to recover. In 2007, we saw a short period of new construction rolling back their prices and then weeks later a slight bounce up. I have a feeling their correction was an over correction:) Even though these prices have adjusted upward, we are talking just slightly upward.
The REO market has seen a slight lowering of prices and then mid November to now we are seeing fire sale prices. Three auctions at the beginning of December helped shove pendings up to almost double October's numbers. The closings have begun and we may see a near seller's market or a seller's market for a short period of time in January for the bank owned properties.
I am very bullish in 2008 for buyers and absorption with in the Las Vegas, NV real estate market.
- Buyers will start coming out but they will be motivated by price. Since we have seen the reductions begin, units sold in 2008 will be higher than 2007. I will say with new construction and resales combined: a conservative 25% higher.
- Sellers who bought or refi'd and cashed out post mid-2004 will still hurt and the short sale market will continue to suffer. Resale median prices will go down 3-5% from January 2008-end of Dec 2009.
- Foreclosures will keep rising: Investors who bought on short term speculation will continue to cut their arms off (let the house go back to the bank) so they don't bleed to death waiting on a return that will take too many years.
- The investors who bought (and are buying) will win in the short term by renting out their properties. We will still see a good rise of average monthly rents in the rental market from January-May 2008 and then topping off to the end of 2008.
So congratulations to the gainers: Most notably NV, AZ, TX, CA, LA (YES!) I do predict NV to be in the top 3 again next year. Let's go for more electoral votes!!!
Wishing everyone a prosperous New Year and many gains for 2008!
Specializing in those forgotten "at" Rhodes Ranch Communities in Southwest Las Vegas that offer peek-a-boo views of the mountains and city lights!
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Excellent! I sure hope that helps normalize the entire state's market and believe it will!