IS THE PAUSE IN BUYING OVER?
The Las Vegas Market ticked slightly upward to break out of it’s 3 month holding pattern to $304K. This slight increase, shows the beginning of more confident Buyers in the Market. Why the pause in the first place? Well let’s count the ways; There is the highly popular continued battle in the news with Trade Wars with China, emerging news about conflicts in Iran, a Global Recession, an inverted yield curve and the ever constant Climate Change & Natural Disasters to name a few.
To add to this laundry list of economic concerns any buyer may have, there are also other motivating factors. In 2018 there weren’t enough houses on the market, making it a HOT Market, hard for any first time Buyer to enter. Many homes were receiving upwards of 5-20 offers, because there were more Buyers than Sellers. Many Sellers were holding out because for one, they could not leverage the sale of their home. That is to get what they have or more for the same amount of money. To get less than they had, they would have to pay more. Not an appealing option for many. There are still a subset of Sellers who think their home is going to greatly increase even more because we are becoming a sports town. The Raiders are coming, we have a list of Sports teams calling Las Vegas Home. Many believe this will equate to more equity and higher values in the next year or two to come.
In 2019, we see many Sellers letting go of some of those concerns and trying to catch a hold of the last remnants of a Sellers Market. What we have now is more homes coming to Market at a much more rapid pace, all as Buyers pause for economic concerns and financial stabilization. It appears much of the Trade Wars have come to pass, the economic concerns are slowly dissipating on low employment rates and continued job growth, a surging stock market and a continued economic pace.
We also see many Buyers looking for a tax shelter and safe haven state. Nevada, having low property taxes, no state income tax, and a ton of economic growth, we see we are the go the number one State for growth from 2017 to 2018, and 2019 is predicted to look very close with new tax legislation going into effect.
Nevada is also leading the way for FASTEST GROWING PERSONAL INCOME.
Personal Income and Job Opportunity are equal contenders here. Las Vegas is becoming the Mecca for Business Start ups, Business Technology vendors like Switch, Google and Amazon. We have low CAT in Nevada, meaning low catastrophic levels. We rarely have earthquakes, tornados, no hurricanes, we are very safe in those regards. Which makes our State and City a natural selection for businesses. Our employment law (right to work state), and ease in starting a business also makes Nevada a great choice!
Las Vegas, Nevada is also leading the way in POPULATION GROWTH. We are in the top 30 largest Metropolitan Statistical area. A (MSA) is a geographical region with a relatively high population density at its core and close economic ties throughout the area. The population growth is also equated with Employment Growth in various industries.
This also brings not only the fastest population growth in Nation, but also the fastest employment growth, fastest personal income growth and fastest job growth in the Nation.
Then comes the question, where is everyone moving from? Where do you think? California!! A whopping 36.2% of all new residents in Nevada come from California. The California Exodus is real.
The Buyer pause offers a little insight into mass decisions and thought. Many people have tread carefully and for good reason going into 2019. When the masses see others pausing, it instinctually causes others to begin to feel concern and also feel the need to head caution. While the Las Vegas Market isn’t as HOT as the 2018 market we are still very healthy and very much an active market, raising the bar in home appreciation, business growth, job potential, personal income, low employment rates and is a market to be reckoned with in any economic climate. We are a destination city, the fastest growing and offer affordable housing.
Vegas is always a sure bet! The forecast is strong for continued growth, even if at a slightly slower pace and excellent for economic stability.
For more Real Estate Market insight and information contact me, Valerie Brown, at (702) 826-1545 or email at firstname.lastname@example.org
Your friendly Las Vegas Realtor!