Market Conditions in Las Vegas Nevada Clark County NV
Believe it or not, there are benefits in today's real estate market. I know the average consumer does not think so and our experience when talking with consumers about the Real Estate Market in Las Vegas is that what they think is happening in the local market is usually much different than what is really happening. Generally, their views tend to stem from a national perspective versus a local perspective. So let's address the local Real Estate market in Las Vegas and Market Conditions in Las Vegas Nevada Clark County NV.
So what are the benefits? It's a great time to purchase. Period. With pricing as low as it is in Las Vegas, and low interest rates, it is more affordable than ever. For some that means the ability to own their first home. For investors, there is stronger cash flow and better ROI. And for sellers, even if you are upside down and have to sell (due to job loss, move, etc.) banks are approving short sales.
What's stopping people from taking advantage of this market? Based on our many conversations with consumers, we have come up with the top 3 reasons (I like to call them myths).
1. It is not the time to buy because we are still in a declining market.
2. It is next to impossible to get approved for a mortgage loan.
3. I can't sell because I am upside down and my bank won't work with me.
Let's address the first myth ~ No one knows where the market is going however we do know that it can't and won't go to zero. Las Vegas values have dropped so much already, and they could still drop more but by how much? The second piece to affordability is interest rates. Are they going to stay at the levels they are at? And for how long? This is another question we can't answer with any certainty. But what we can answer with certainty is that they can't stay at those levels forever. So do you hang on and hope for values to decrease more and risk interest rates increasing? At the end of the day, with today's pricing and interest rates at their current levels, today is a great time to buy!
Now to the second myth ~ Getting a loan today is much different than it was 5 years ago, but for good reason. It is not impossible to get a loan but you have to have a job, have decent credit, and prove that you can afford it, meaning your debt to income ration is within the margins required by your lender. And you do have to have some money saved up. The FHA product (for owner occupied buyers) only requires 3.5% down. You'll also need money for closing costs however you can ask the seller to help with those. Besides FHA, there are conventional products available that require 10%-25% down, and renovation loans for both owner occupied buyers and investor buyers. And we can't forget the $0 down VA product that is available. So, even though it is harder today to get a loan, it is not impossible.
And the third myth ~ Even if you are upside down on your mortgage, you can sell your home. It is more difficult and takes longer but sellers are successfully short selling their homes every day. And if you have a Fannie Mae loan, you may qualify for the HAFA program. So know that if you are upside down, a short sale is a viable option.
Market Conditions in Las Vegas Nevada Clark County NV
Dispel the myths ~ once you do away with those 3 commonly held beliefs, you will recognize that there are many benefits to today's market and the only decision you need to make is whether to jump in and seize the opportunities or let the opportunities pass you by.
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