There is a thirty-day supply of rentals in the Las Vegas Valley, down dramatically from spring of 2017 where there was a ninety-day supply. Why are rentals in high demand and inventory so low? There are several factors affecting this market; one factor is the low inventory of affordable properties available for sale, making it difficult for buyers to find a home.
Buyers making offers and losing out on properties to higher bidders or cash buyers are getting frustrated and putting buying “on hold.” These frustrated buyers are renting apartments, condo’s, townhomes and single-family homes in lieu of purchasing. They may be back in the market but not until the market dynamics change.
Millennials, the 26 to 34-year olds, for the most part do not want the responsibility of home ownership, and they prefer to spend their money on experiences, not a mortgage payment. Many in this age group are also carrying large amounts of student debt, which is impacting their ability to save a down payment or afford the monthly payment.
Vacancy rates have dropped dramatically over the past few years; from 9.48% in 2015 to 3.1% in 2018. This demand has also pushed up overall rental rates.
This is good news for landlords, apartment owners, and Real Estate Investors.
Windermere Prestige Properties has many Rental Homes available; long term and short term. To find out about these offerings go to: www.finvegashomes.com or www.lakelasvegasvacation.com
The data indicates there is lower inventory than spring of 2016. This lower resale inventory of Single Family homes has impacted the days on market. Properties selling within the first 30 days are at 62.6% of total properties available for sale. In addition, there is an increase in the number of properties selling in the first 30 days by 10% when compared to April of 2016.
Average Days to close from list
Total average days on market is now less than 120 days. Properties that are priced right and in the market under $300,000 are getting multiple offers and in many cases, buyers are bidding above list. Some sellers are asking buyers to pay more than the appraised value if the appraisal comes in less than the agreed upon sales price.
Recommendations to buyers
If you are a buyer, we recommend you act quickly writing and presenting your offers. Include your pre-qualification letter from your bank, or proof of cash to close the transactions if you are paying cash. A letter to the seller telling them how much you like the home could be what you need to convince the seller to sell to you in a competitive market.
Leaning towards a seller’s market in 2017
We are seeing a very positive trend appearing in November, 2016. Inventory, which is the number of resale homes available for sale at this moment in time, is at its’ lowest since October of 2013. This is not just a seasonal low. When we compare the inventory from November of 2016 to the previous Novembers we are 16% under November 2015, and 26% below November of 2014.
This trend coupled with and election being over, positive economic forecasts including job growth in Las Vegas; indicate a potential for increasing prices in 2017. Each percentage of price increase in this market means that still underwater homeowners are closer to potential options. Many of these homeowners have not been able to move. These are the residents who have not walked away from their home or short sold their home but rather have stayed the course realizing they still needed a place to live and decided to wait it out. In 2017 these homeowners will get closer to being able to sell and move up, down or out.
Another positive trend if the increase in luxury sale in the market. November sales over one Million dollars are up 46% from prior month.
Interest rates are creeping up as well but we are still at historically low rates making homeownership possible for many.