To buy or sell or not to?
Las Vegas home prices continue to decline in January 2023, with more homes available and fewer sales than one year previously. Per the Las Vegas Realtors (LVR), it was reported that the median price of existing single-family homes sold in Janurary was $425k which is down 2.3% from $435k in January 2022. Note, our all - time high was a price of $485k in May of 2022. Condo and townhomes are up 4.9% from a year ago averaging $255k, but down from the all - time high also in May of 2022 at $285k. We are looking at approximately 5,500 single - family homes currently listed for sale and roughly 1,250 condos and townhomes available to purchase. That's about 200% more homes and 275% more condo's and townhomes than last year. Sales are about 50% fewer for single family homes and 45% lower for condo's & townhomes than a year ago. Interest rates higher, homes sit longer, prices are lower, what does all this mean? To some, it's a time to sit and wait unless one has to sell or purchase. To others, it's an absolute oportunity to move and take advantage of the pricing. If you are a buyer, sellers are more inclined to negotiate, buy down rates, and work with creative offers. Depending on the buyers age, a 6.55 interest rate is way too high. To those who well remember double digit interest days, it's still a bargain. Many in this age bracket feel why not take advantage of the incentives and just get the home you want, and re-finance when the rates come down. If rates go higher guess what, they locked in at a lower rate and got the house at a great deal. Sellers on the other hand are saying wait a minute, my house was worth $50k more just a few months ago! I'm not selling for less! But if you purchased 5 or more years ago, didn't you pick up quite a bit of equity regardless of the current adjustment? Aren't you going to price your next home you purchase at the lower rate? Tough choices. My personal experience would tell you this: Look at today, not 6 months ago or a year ago. What is currently good for you and your family? What is your time frame? Are you looking to stay in your new home 5 - 7 years? If so and based upon sold pricing for homes in the valley for the last 50 years, it's highly unlikely you will lose money on your home unless something catastrophic happens. This means getting to enjoy the home you want, tax benefits, and appreciation. If however you are flippng or looking at owning less than 5 years, you are taking more of a chance and must weigh your personal situation against the total cost of home ownership, renting, selling, or investing. Should you wish to discuss, give us a call. We'd be happpy to lay out the pluses and minuses. Then, you decide what's best for you!
