I will say it. It is NOT a buyers market. People need come down from their fences! Watch the news and you'll think the sky is falling. Try to get a buyer a home, it will take you several offers to get one . On average, I write over 3 to 5 offers for a client before we get a property. I had a client 2 weeks ago write an offer 53k over list on a nice bank owned home property and not get it. It was listed for 360k not 800k and the buyer was going to put down 200k!
We had about 4,000 homes close in April according to the MLS search I did here for the Las Vegas real estate market. This month there are another 4,000 homes pending and an additional 7,000 homes in contingent status.
I have an investor picking up a large amount of properties. We submitted 8 cash offers at or above list price and only got 2 of the 8. I think it's time to start telling people what we are experiencing as buyers agents. People are buying and there are a lot of people buying!
The buyers are from both ends of the spectrum. I have plenty of the first time homebuyers picking up the homes at 100,000, that were once priced at 225,000. I also have the sophisticated buyers investing hundreds of thousands of dollars into this market.
It is just as foolish in my opinion to think the market will keep dropping as it was 3 years ago in thinking it would keep appreciating at the pace that it went.
When you can move into a 1500 sq ft single family home for the same monthly payment as 2 bedroom apartment, get an interest rate below 5% and a $8,000 tax credit....It's not rocket science!
I'm sure there will be the people stating that we will drop another 25%. Las Vegas real estate is a different animal than Detroit and Orlando. We were the first to drop and I think we will be the first to come back. If people are buying homes like they are now, it makes no sense at all for prices to drop when people are writing and writing over list. Supply and demand right? Let the fun begin!
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