What do you call an opportunity when everyone agrees it is a good one and lots of people have reported making money on it? Too Late! Right now, all the market indicators that I can see point to this being the time to buy; especially the bank repos. But this is true only for select price ranges and select areas. For most areas and price ranges in Las Vegas I believe prices will fall further. But these are not the properties investors are looking for. Investor properties have just about leveled out. In some of the prime rental areas, single family homes are currently selling for about 102% of asking price for well priced properties.
As you can see in the graph below, sales are at the second highest level in history. The majority of sales are in the sub $200,000 price range and priced at less than $100/SqFt. These are the properties investors target since they are below replacement cost, have good appreciation potential, positive cash flow as rentals and rent quickly.
For the last few months, the price trend for the metro Las Vegas area has been flat and lately prices have started to rise. See the graph below for metro Las Vegas prices.
For the last few months, inventory has been slowly rising but this has not resulted in any additional price decreases since a lot of these properties are short sales and do not impact the investor market.
Despite the large number of properties entering the rental pool, the time to rent for single family homes in prime areas have fallen over the last few months and rents are starting to increase.
Las Vegas has other advantages that make it a natural for investors. These advantages include the following:
Contact me if you are considering buying or selling Las Vegas real estate. You will be glad you did.
...Eric
Eric Fernwood
RE/MAX CENTRAL
8400 W. Sahara Ave
Las Vegas NV 89117
Email: EricFernwood@gmail.com
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