Looks like we have another mixed message month of numbers - sales up, inventories down, prices down, rentals up, supply down.
Let's take a closer look at what this tells us.
- First, the reduction in inventory closely matches the increase in rentals - potential sellers are likely moving to rent for the next year and sell later - good plan if you can do that.
- Second, sales are up slightly along with pending sales. We may be seeing the peak, but we are also reducing the inventory and are seeing our supply of homes for sale less than 7 months. If this trend continues, we will see prices begin to rebound.
- Third, median prices are down again as the percentage of solds moves close to 90% distress sales. So the bargain hunters are out in force and the lenders are finally engaging to unload their inventory. Look for this trend to strengthen the market long term as distress inventory falls. For distress sale buyers, if your agent is tuned into the market, he/she will be advising a net offer on these properties at least at list price.
The days of successful offers 10-20% below list are history.
- Fourth, while the distress sale numbers are going up, the experts are still saying that these trends will turnaround dramatically late this year and early 2009. If that is true, we should see upward pressure on prices.
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Conclusions
If you are a seller, your best bet is to list in early spring 2009 (February). But keep a close eye on the trends for major changes. Renting for a year is also a good option.
Buyers - it is time to get in the game! Interest rates, while historically low, are trending up and the choices are still plentiful. Do not miss out on a great opportunity to invest in Las Vegas real estate.