The real estate market, like all other markets, goes through cycles. The stock, bond, and commodity markets have been proof
of this. They go up, go down, or just go sideways, sometimes or
extended periods.
The Key to Profiting From These Markets is to Know When the Current Trends are Going to Change.
This is not an easy task and many investors have paid a price when they didn't recognize a trend or simply guessed inaccurately as to its change. The residential real estate market goes through cycles as well, with one important difference. Unlike a stock or a bond, the majority of home owners are not looking at their property only as an investment
that is bought and sold for profit. The result is stability which has made home buying a safe, conservative investment that promises positive rates of return. Real estate has always had its share of investors who view real estate in a long term perspective.

Investing in Las Vegas Residential Real Estate Has Become Too "Boring" For Speculators.

Speculators are very different from investors as they tend to
look for above average returns in a shorter period of time. about two years ago, our market changed from being a boring conservative long term investment, to an exciting short term opportunity delivering great returns almost overnight, the perfect arena for speculators. Home owners who just happened to
buy before the spike were also recipients of the windfall of rising prices, and many are taking their profits and moving to other parts of the country where prices are cheaper.
As a wise person once told me, "the one thing that never changes, is there is always constant change." The Las Vegas
market is changing. It was bound to happen, and it is. The Las Vegas Real Estate Market is in a Cooling Off Period.
It started just after the summer months. Some experts believe that the Federal Reserve has pushed interest rates up to cool off the housing market. Whether deliberate or not, it is working.
At the close of February 2006, 12,200 homes were for sale. This is 25% more homes for sale than in February 2005. The number of homes sold as of February 2006 was down 15% compared to homes sold in February 2005. This means there are more homes on the market and fewer are selling.

For those selling right now, you have a lot of competition. Finding an agent who will get the most marketing exposure for
your property is more critical than ever. Prices may fall neighborhood by neighborhood if those who must sell at any price play the reduction game. If you have a few of those in our neighborhood, you will be affected.

The long term view for our valley still looks great. We continue to have job growth, more baby boomers are migrating from the cold country, and we are running out of available land on which to build. For now, we should return to the normal "boring" rates of return, and our market will become more a conservative long term investment opportunity as the short term speculators are leaving.

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. For more information and a complimentary report on the trends in your neighborhood, call us at 702-286-3608 or 702-278-2100 today!