As many of you know, The era of the NFL “Las Vegas Raiders” is soon upon us following the addition of our “Golden Knights” NHL team. This is an exciting time not only for sports fans, but also for the expansion of our city, Las Vegas, as a whole.
Our Real Estate Market has been blessed with tremendous gains this year alone. Though many may see a correlation between our overall progression and the sporting expansion; this easy link has actually yet to effect us. This chain of events is predicted to realistically impact us in roughly 2-3 years. I expect this to absolutely strengthen our economy, create more jobs, and new reasons to attract tourists to a city that thrives off of its strong reputation, and a healthy flow of foreign funds.
Take Note – What we’re actually seeing here is artificial inflation based on supply, demand, a shortage of housing, and a slowly increasing interest rate.
As the rates increase, our Buyers begin to lose some of their “Buying Power”. Meaning they will no longer qualify for as much of a loan, or be able to keep their monthly payments where they’d want it to be. If you wear these shoes – You’d have to hypothetically sacrifice from your max budget if you want to remain in the same comfort bracket you were in months prior.
Meanwhile, if you happen to be a Buyer in our current market, and you’ve been hunting, viewing, and offering on 5-6 homes that fit your criteria you’d literally experience the struggle. You could see yourself living in any of those 5-6 and you would be proud to own any one of those you offered on. In the beginning you started offering less; hoping for a deal. Then when that didn’t work, you began offering list price asking for little to no concessions.
…Yet you keep getting beat.
So you ask the Agent on the other side. “Hey, what gives?! We’ve prepared a clean offer at exactly what you had asked for on the MLS!” You begin hearing answers like “We had multiple offers all over asking price” and “A cash offer came in and we couldn’t pass up a sure thing”.
…But you did your homework. There’s no way this home would appraise for higher than the asking price. Then you’re told the competition agreed to contribute ( X ) towards their offer price in the event that the home appraises below the agreed upon purchase price.
Time to adjust.
Many are doing just that, ultimately feeding the essence of inflation here.
On the seller’s side we make it a point to make sure our marketing is top of the line with 4k Video Walkthroughs and Target Marketing to drive the demand straight to the best homes before or right as they hit the market. With low inventory the options are extremely limited, so each and every advantage is priceless. Expect the sellers side is doing the same.
Regardless of which side you’re on. Make sure you have a strong line of communication both with your Agent, and with your Lender.
It truly is vital to your success.
For more Expert Insight and any other questions you may have about the Las Vegas Real Estate Market, make sure you reach out to us anytime for timely, accurate, and insightful advice and guidance.
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