Bubble Trouble!!

In the Las Vegas Valley the only concern about bubbles has been in the champagne glasses the sellers were toasting their good fortune with. Lately the “bubble talk” has become more apparent in the media. Does this apply to us?

Las Vegas continues to be blessed with a number of factors that have kept our local economy strong. New construction of homes and casinos continues to create jobs. The state continues to recruit businesses to Nevada for favorable tax benefits. Southern Nevada continues to run short on available land to build on. Baby boomers are continuing to relocate from the cold northeast to the sunbelt states, including Southern Nevada.

As long as the above factors remain in place, we should be seeing only champagne bubbles. Interest rates remain the “wild card” that may cause future price increases to be put on hold. If rates rise significantly, we may see prices drop temporarily. So far, that is not the case.

Filling The Void

Single family home prices have jumped dramatically over the past few years. This created a void as first time buyers were priced out of the market. In the past 6 months we have witnessed a number of apartment to condo conversions coming online and they are selling like hotcakes. First time buyers are gobbling them up. These are the same buyers that will be moving up to single family homes in the future. The mid-range priced homes are sitting as inventory levels of homes for sale is still very high. Now is not the time to look for new neighborhood highs.

If you are a buyer and believe rates are going up, lock in the lower rates today and you can purchase more home for the same payment.

If you fear the bubble is about to pop, sell now and rent. The risk – if you are wrong, you will buy back into the market later at a higher price.

Bottom Line

In our opinion - other parts of the country may hear the bubble pop, but as long as the Las Vegas economy remains strong…. Keep the champagne on ice!

The team of Bill & Stacy Loucks is ranked in the top 2% of agents in Southern Nevada. We specialize in listing and selling homes and our track record proves it. Our listings sell for 99% of asking price and are on the market for less than 30 days. For more information and a complimentary report on the trends in your neighborhood, call us at 702-286-3608 or 702-278-2100 today!