Las Vegas Properties – What Is The Deal?

Is this the time to look at Las Vegas properties again? Once the darling of the real estate investor, Vegas may be a hot product once again.

During 2003-2007 the values of housing in Las Vegas skyrocketed. Then came the crash. All the increases seen during that period were given back and then some.

The value of houses roughly doubled during that time frame, then returned to late ’90’s pricing not long ago.

Also for new homes, Las Vegas witnessed the same increase then crash.

The first time home buyer and the common man were priced out of the marketplace, which could not be sustained. The average wage in Las Vegas didn’t change, but the price of houses doubled. Nobody thought to wonder who would be buying all the homes that the average employee could not afford to buy.

A lot of individuals like to blame Las Vegas Realtors for the craziness, but that isn’t fair. If real estate agents could actually influence the values of homes, would they have dropped so dramatically? They’re an easy group to blame, an easy faction to vent frustration at.

Since prices have returned to sustainable prices, many buyers who had been priced out of the marketplace are able to purchase again. First time home buyers make up a large percentage of active buyers now, as do investors buying houses to rent out.

Both kinds of shoppers are competing with one another even though they appear to be wildly contrasting. Both are looking to purchase entry level homes. The novice house buyer because that is where you start, and the investor because entry level homes are in demand for rent.

The issue is for the first time home shopper who is trying to buy a home with a loan. The investors are paying cash, and if a seller is given two similar offers but one’s all cash and one is financed, the all cash offer will win.

If you are making an offer to purchase and you are getting a loan for the purchase, your proposal is contingent upon you receiving that financing.

Buyers are only pre-approved for a loan prior to making an offer. A complete approval is given when a proposal is agreed to by a seller, so there is not a way to know for sure that the buyer will be approved.

Therefore we have returned to where we began with investors and home buyers competing for the same houses for sale. Only time will tell how this plays out..