Daily we receive questions regarding the future of the Real Estate Market in the Las Vegas valley. Specifically, whether it is a good time to buy or is it better to wait for a potential Real Estate bubble to burst and potentially prices would drop.
Here is what we Expect in 2021:
- Interest Rates to continue to increase slightly. This could cause a slight decrease in the number of buyers. As interest rates increase, the buying power of the buyer decreases.
- Inventory of homes to increase slightly as the number of Americans are vaccinated. Some homeowners are holding back listing their homes because they are reluctant to have potential buyers walking through their home.
- Demand to remain high. The movement of Californians into the Las Vegas valley will continue as long as the threat of higher California state taxes continues.
- Prices to continue to increase as the inventory is expected to remain somewhat low and demand high.
There are no indicators of a Real Estate Bubble. Nationally Residential Loan delinquency rates have dropped in the 4th quarter of 2020 and consumer loan delinquencies are at the lowest since 2016.* Because these delinquency rates remain low, there is no indication of an increase in foreclosures. Low interest rates are a powerful advantage for buyers. Waiting for prices to drop could be a long wait.