Its mid-July in Las Vegas and smoking hot!! I am not talking about the temperature… YES I am talking about the real estate market! We are back to listings having multiple offers within 24 hours, lower commissions being offered, agents getting away with only putting a handful of pictures on the MLS and not having to even install a for sale sign in the front yard!
Is the entire market like this? Are all listings selling that quick? Is there any hope for buyers out there?
Yes it is true there are listings that are experiencing handfuls of offers within 24 hours & selling for thousands over list price!! We are seeing an uptick in all cash buyers and seeing many buyers waiving their appraisal contingencies in order to compete!! We know the banks do all they can to try and keep a lid on the market from running away (they do this using appraisers) but when you have so many all cash closings OR buyers agreeing to pay the difference up front it really does not matter… There is nothing you can do to keep a lid on a market like this. What is fueling this massive sellers’ market? Well like most of the country, Vegas has an inventory problem! We simply don’t have the amount of listings needed to maintain an even pace so whenever you have low inventory and high demand, you will always see prices soar! That is exactly what is happening right now in Las Vegas… But is this happening in every submarket and price range in Vegas? The answer is NO!! It is not!!
So if you look at the homes that are flying off the market they range in price from $100k to just below $400k… Once you get up to $350-400k, the amount of people who can qualify for a loan that high starts to bottleneck… And the higher you go the harder it gets… Now homes that are $350-450k in Summerlin, Anthem, Seven Hills, and Green Valley are considered entry level – So homes in those sub markets also tend to fly off the market but anywhere else between $400-900k tends to sit for a while.
I have many clients that I have their homes listed for $500 or $900k and they are seeing all these FB posts wondering what the hell is happening. They ask themselves why isn’t our home getting 8 offers in the first day let alone 6 months!
The issue starts when the listing agent doesn’t set proper expectations. When I list a property in a market like this I am very honest and I make sure to let my clients know what the average days on market is for their price range.
As a review, ANY home in Las Vegas, Henderson, and N Las Vegas that are in decent condition (or better) will sell in less than 24 hours with multiple offers. Once you get up above $350k (not in Summerlin/Green Valley/Anthem) you will see listings tend to sit longer and not just fly off the market. If you are in those areas $350-450k will fly off the market (as long as its not grossly overpriced) because those prices are considered entry level.
No matter where you are located in Vegas listings above $600k tend to sit. There are exceptions to this rule as well, There are homes that list for $800 or $1.2m that fly off the market in a matter of days just because they are amazing and in amazing areas! Location Location Location! That will never go away and will always be the rule of thumb when it comes to real estate!
Do buyers have any hope in a market like this? I do have to admit when it comes to the “affordable” price range ($100-$350k) it’s a ROUGH market. Buyers and their agents are getting beat up! I have black eyes every month dealing with this price range. If you are a buyer in this price range it really comes down to having an agent with both experience & connections!! I am a true Las Vegas native of 46 years and have been licensed for 16+ years. I am aggressive & I negotiate many of my deals prior to ever writing an offer! That is what it takes. It’s all about who you know and if you happen to know the listing agent OR the broker it can go a long way in getting your offer accepted. If the agent knows you are a solid agent who closes and who will only work with qualified buyers it gives you SUCH a huge advantage when up against multiple offers!
My clients often ask me “What about new homes? Builder inventory?” That is a great question but the honest answer is that builder product is really hard to find under $400k these days BUT… There is some light at the end of the tunnel. Builders know that they are pricing themselves out of the market. As we speak, builders are redesigning their land use for smaller homes that are affordable! That is exciting news for buyers for sure… Also markets like this tend to force builders to buy land outside of the Vegas valley so we will see subdivisions popping up in Pahrump, Logandale & Sandy Valley to name a few… You will see it all start popping up soon so keep your eyes open! They need to solve the affordable homes problem some way because over the next 2-3 years we are going to see a HUGE surge in population…
Las Vegas has become a destination to LIVE!!!! Not just to party… People are coming and they are staying! I LOVE IT! Daryl Hanna 702-218-4585