BILL & STACY LOUCKS
Salesperson & Broker/Salesperson
Realty Executives of Nevada

(702) 286-3608
(702) 278-2100

What a difference a year makes!

In our last newsletter, “After The Perfect Storm”, we discussed the market conditions that were prevalent in the 4th quarter of 2004, which were very different from what we had witnessed earlier in 2004 and made some predictions for the 2005 market.
So far, the 2005 market is moving as expected.

What is normal for the Las Vegas area market and where are we now? Based on past statistics, a balanced “normal” Las Vegas market occurs when we have 5,000-6,000 Single Family Residences (SFR) on the market. In the spring of 2004, when the market was at its peak of insanity, we had 3,000-4,000 SFR listings, and it truly was an incredible seller’s market.

Recently we have been averaging 9,000 - 11,000 SFR listings. A direct opposite to where we were a year ago. As a result, we have a strong buyer’s market. In a strong buyer’s market, three things happen commonly; buyers often opt for the least expensive homes in the subdivision; highly upgraded homes don’t receive premium prices; and it is not unusual to see offers coming in $5,000–10,000 less than list price and being accepted.

We factor this into our strategy for pricing and marketing homes and are still selling homes at the highest price in the subdivision. The key to selling today is to price your home appropriately from the beginning, and hire an agent with a very aggressive marketing plan. Homes that are priced properly and marketed aggressively are moving in an average of 22 days right now. If a property has been on the market for more than a few months, it is priced wrong.

Most buyers are willing to pay a fair price for a property. However, nobody wants to overpay, and with all the choices they currently have, they move on to the next listing.

What you see isn’t always what you get!
One mistake that sellers often make is to look at what the neighbor down the street has their home listed for and match that price. If the neighbor has their house priced wrong, now there are two homes priced wrong and both may sit for months. Sellers who have been holding out for last year’s prices are staying on the market longer, and becoming “stale.” What we mean by stale is: potential buyers will ask the agent how long the home has been on the market and begin to wonder what others saw in the home that caused them not to buy it. This creates doubt as to whether or not they should make an offer. In the end, the home sells for less than it could have were it priced right from the beginning.

With the right agent, this is absolutely the best time to upsize or downsize.
In our current market, a good agent can negotiate a discounted price on your new purchase and still use the right strategies to sell your existing home for the highest price. Choosing the right agent in this market is critical!

The long term outlook remains positive. We are running out of available land to build on. Recent land purchases by builders show that land prices are still rising. That means future new home prices will be higher as well. The number of building permits being pulled in the valley is down over last year’s numbers. This could result in a shortage of new home inventory down the road. This was one of the factors that helped create “The Perfect Storm” which caused our prices to rise dramatically last year. Buying properties now for the long term (5-10 years) still looks great. Personally, we are still accumulating as many properties as we can right now.
Important Note: The most active buying period of the year is between April and August. Families like to move and get settled before school begins in the fall. If you are considering any real estate sales or purchases call us today-don’t wait.

The team of Bill & Stacy Loucks is ranked in the top 2% of agents in Southern Nevada. They specialize in listing and selling homes and their track record proves it. For more information and a complimentary report on the trends in your neighborhood, call them today at 702-286-3608 or 702-278-2100!