NOW OR LATER WHEN IS THE RIGHT TIME TO BUY A LAS VEGAS HOME
A few weeks ago, an eye-catching article surfaced on the Investopedia website—one with the arresting title of “When is the Right Time to Buy a Home?” I have always assumed that for prospective Las Vegas home buyer, the answer to that question varies by the individual circumstances. But if there is a more cut-and-dried universal answer, it would certainly be good to know it. Worth reading. Despite its name, Investopedia is not an encyclopedic history of investing. Its history is interesting, though—it started in Canada, was acquired by Forbes, then sold a short while later to ValueClick for $42,000,000 (talk about good investments)! The article that was to supply the answer to “When is the Right Time to Buy a Home?” did turn out to have the right answer, though it’s a little less definitive that you would hope—prospective Las Vegas home buyers don’t get the simple “NOW” or “LATER,” which would be most useful. However, before the final answer is presented, scattered between the many ads and other clickbait that apparently pay for Investopedia are some interesting current facts and observations, and several cop-outs. When it comes to the big question, “When is the Right Time to Buy a Home?” by halfway through the article, it’s looking a bit more like “now” than “later.” It cites The National Association of Home Builders’ Housing Opportunity Index, which now finds that nationally, the majority of homes are affordable to families earning a median income of $63,900. True, most Las Vegas families don’t earn exactly $63,900, but still, it’s good to know. Reading on, we learn that this level of affordability has been better in the past and might be better later “unless mortgage rates move higher in the future.” Since elsewhere on the site we find “the consensus is that interest rates will rise,” it doesn’t take Sherlock Holmes to deduce where “When is the Right Time to Buy a Home?” is leading. Or so you might assume before the article quotes a saying on Wall Street: Don’t try to time the market, which Investopedia also advises applies to real estate. Oddly enough, it also says, “If you’re looking for an edge, interest rates are near historic lows, so now appears to be a better time than most for purchasing a home.” That’s a pretty strong hint, but the answer isn’t spelled out. Yet. There follow some bits of good advice (hire an inspector prior to purchasing a home; don’t buy a car while your credit is being checked; inquire about taxes) before we get to the ultimate heading, “THE BOTTOM LINE.” It took a while, but here is the advice Las Vegas readers would have been looking for all along, bottom-lines. Investopedia’s answer for “When is the Right Time to Buy a Home?” is a lot more sensible than most: “When you can afford it.” I couldn’t agree more. Even if all the other factors weren’t as positive as they are today, being able to make a good fit financially is at the top of the list. If now is that time for you—or if it’s time for you to put your Las Vegas home on the market—it’s also a good time to give me a call!
FEATURE ENHANCEMENTS GROW VALUE IN AN LAS VEGAS HOUSE FOR SALE
Trying to ferret out which features home buyers value most is no simple matter, even though that’s of particular importance when you have a Las Vegas house for sale. Updated kitchens and bathrooms are always near the top of the ‘most desired’ features compilations, and I’d put ample storage right there with them. It may not come to mind when you ask prospects what they value the most, because it’s a “feature” that’s so much an integral part of a home’s design—but a house for sale with small closets and few drawers is still likely to register with buyers as somehow “smaller” than others with the same square footage. According to the National Association of Home Builders, updated cabinets and counters may catch a buyer’s eye, but other less expensive improvements are may serve the same purpose. The top three features home buyers from all walks of life want in a kitchen are double sinks, room for a table, and a walk-in pantry. That doesn’t mean tearing out walls or reconfiguring the whole kitchen—but it can call for seeing if a similar effect can be achieved within a sensible budget. If you don’t have room to create a walk-in pantry, see if there is room for a stand-alone pantry cabinet. If you will be updating the kitchen sink and fixtures anyway, consider a deeper-welled model. Any improvements that add extra ‘roominess’ to the kitchen will register with many prospective buyers. The NAHB has more findings that should interest anyone with a Las Vegas house for sale. Buyers increasingly favor environmentally friendly homes, for instance—but…they don’t want to pay extra for those ‘green’ features. On the other hand, they are willing to pay more for a home that’s energy efficient. If you have already determined that new appliances will be needed anyway, installing those with high Energy Star ratings is a definite recommendation. Likewise, if window replacements are also in the cards, new energy-efficient windows are worth considering. Today’s buyers are more aware of details like windows constructed with triple-pane glass. It’s common knowledge that those favorable Energy Star ratings mean decades of lower utility bills. One low-cost way homeowners with a Las Vegas house for sale can capitalize on buyers’ safety concerns is by installing some exterior lighting. It’s a feature rated as “essential” or “desirable” by 80% of buyers in one study. Addressing the same issue: security systems. When a house for sale features a wireless home security system in its listing, even buyers whose safety concerns are less than top-of-mind will take note. Before making any improvements, it’s only sensible to have a discussion with your Las Vegas REALTOR®. Even before you’re fully committed to putting your Las Vegas house up for sale, I’m ready to offer a no-obligation assessment of your home and how to best take advantage of today’s active market!
MORTGAGE LENDER OPTIMISM COULD SPILL INTO LAS VEGAS MARKET
If anyone involved in Las Vegas real estate were to try to pick a word to characterize the mortgage industry as a whole, “sentimental” wouldn’t be among them. Especially over the past several years, “frustrated” might be apt, or “hog-tied.” Mortgage issuers have been hampered by tough rules developed in reaction to the sub-prime mortgage mess. They certainly wanted to issue more mortgages, if only for their profitability, but until recently, the lending guidelines made that difficult. In any case, this is an industry that relies on hard facts and statistics to govern lending decisions. Mortgage industry leaders are therefore not inclined to be overly optimistic, overly pessimistic—nor are they prone to exaggeration in their public pronouncements. So when the powers-that-be at Fannie Mae come out each quarter with their Mortgage Lender Sentiment Survey, the “sentiment” is not the Cry Me a River or You Are the Sunshine of My Life variety. This “sentiment” describes how real estate lenders (presumably including some Las Vegas mortgage companies) feel about mortgage business prospects in the coming months. The actual report has a remarkable record of a lack of sentiment: it’s usually pretty much on target. So it is that when the 2015 first quarter Survey appeared last month (this is one real estate report whose ‘first quarter’ paper actually appears in the first quarter), it sounded another positive note in the assemblage of springtime real estate projections. The summary talked about “an improving outlook among mortgage lenders” because those surveyed “expect mortgage demand…to grow over the next three months.” The hard number was 71% having that expectation, which wouldn’t be surprising, given our entry into the busy spring selling season. The optimism drew more from the fact that this is a substantial improvement compared with the same quarter last year (71% vs. the previous 59%). If the growth they anticipate holds true for our market, it wouldn’t just indicate improving activity for Las Vegashome buyers and sellers. After what they viewed as an “uneven” 2014, Fannie Mae’s Chief Economist Doug Duncan said the results were “consistent with our view that an improving economy, strengthening employment, and increasing consumer confidence” pointed to the more cheerful outlook. Also cheerful was the picture mortgage issuers expected for their well-being. A year ago, lenders who thought their profitability would increase were in the extreme minority: 21%. This year, the size of the optimistic group doubled. Local mortgage applicants could find good news in one more of the reasons for the expectation for mortgage demand to grow over the next three months. The report talked about how last year’s credit tightening was continuing to “trend down.” And they’re at the top was the headline which mentioned “Gradual Credit Easing.” For anyone who had found it hard to qualify under last year’s rules, that’s very welcome news. If you are buying or selling anytime soon, I hope you’ll give me a call: the sentiment here is also the green light kind!
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