HOW TODAY STACKS UP FOR WOULD BE LAS VEGAS FIRST TIME HOMEBUYERS
Historically low mortgage interest rates have been a lifeline for many Las Vegas first time homebuyers in recent years, keeping homeownership within reach for many who wouldn’t have otherwise been able to make the leap. For them, and for all the other than first time Las Vegas homebuyers, the fact that home values have continued to rise has been an added boon. But, as just about every mortgage industry expert will tell you, the gig is almost up for those rock bottom rates. Yet the question for many first-time homebuyers remains: is it time to buy or not? It’s a good time to take a hard look a few of the known facts— According to web giant Zillow, as of Q1 2015, potential home buyers should expect to spend about 15% of their income on a mortgage for an average home in the U.S. When you compare this with the historical averages, it makes today’s rates temptingly low: the typical percentage has been closer to 21%. In terms of dollars spent monthly, that’s a big (and terrific) difference! At the same time, the historical average has a typical renter shelling out 24% of income. Today, that’s closer to 30%…making first time homeownership that much more inviting. Taken together, Zillow’s new calculations definitely appear to make finding a home to buy the more affordable option. On the other hand, it’s also true that a number of factors work against first-time homebuyers—in Las Vegas and nationwide. College debt, for one, is far more of an obstacle than it used to be. And the other side of those all-time high monthly rents in many places are making it that much harder for would-be first-time homebuyers to save for a down payment. But with the widespread phenomenon of growth in rents outpacing growth in home values, the rental affordability problem isn’t likely to improve any time soon. With mortgage rates likely to be on the increase as early as this fall, the long-term outlook may not grow rosier as time passes. The implied takeaway: strike now while the iron is hot! Whether this real estate foray is your first or tenth, if you’ve been considering taking advantage of this summer’s Las Vegas home buying bargains, contact me today for an introduction to a qualified mortgage broker—and to discuss whether this might not just be the perfect time to start your search!
LAS VEGAS HOMEOWNERS CHEER US RETURN TO HOUSING VALUE HIGHS
For Las Vegas homeowners, the news was a long time coming. The bounce back from last decade’s dizzying plummet in the nation’s residential housing values has been underway for quite a while now—but those values hadn’t quite returned to their former heights. Until last month! The Wall Street Journal was early to break the long-awaited headline, “Existing-Home Prices Hit Record: $236,400.” Using just-released June sales numbers, the Journal reported that the nation’s average housing prices now topped the previous high-water mark set in 2006. It meant that a lot of paper losses have been obliterated—and the return of full nights’ sleep for many U.S. homeowners who have long been underwater. Another aspect of June’s housing report card could also ease nerves on a wider scale. USA Today led with it: “Existing homes were sold at the fastest pace in eight years…” It quoted the NAR’s Lawrence Yun as pronouncing this year’s spring buying season “the strongest since the economic turndown.” That’s where the current housing market profile seems to differ in kind from the previous peak of $230,400, registered in July 2006. That mark was reached after sales volume had started to fall. Prices then followed, starting with a slow decline that continued until the spring of 2008, when the slump became a nosedive—unleashing the subprime mortgage crisis. The “bubble” of unsupported high prices had burst. There were more glad tidings in last week’s news, as well. U.S. home builder confidence levels hit its highest mark in “nearly a decade” (WSJ). A rise in demand for apartment housing caused a jump of 9.8% in housing starts. But the biggest news was the existing-home price rise, reported as having “rocketed” 35% since 2011, “benefiting current homeowners by giving them an opportunity to trade up to better homes or sell and cash out.” That’s the kind of spur that can stimulate the entire housing market. With one economist (Andrew Hunter of Capital Economics) quoted as saying “the housing recovery has shifted into a higher gear,” it wasn’t surprising that other analysts were in agreement. “Don’t Laugh” read one headline from international observer Quartz.com; “the U.S. housing market is the best story in the global economy right now.” Reuters agreed about the implications. Their headline: “Strong U.S. housing data boosts the dollar.” Las Vegas residents don’t have to be global investors to take advantage of this summer’s values. A simple call to my office is all it takes to get things started!
HISTORY OF LAS VEGAS LISTINGS STARTED CENTURIES AGO
When you put your Las Vegas home on the market, your most effective marketing mechanism isn’t the front yard For Salesign—although that sign is certainly one way to generate valuable neighborhood awareness. It’s not the well-designed ad your REALTOR® publishes, even in the most well-read Las Vegas newspaper or magazine—although those expensive insertions can draw valuable inquiries. Without a doubt, the most powerful marketing mechanism at your disposal is the Las Vegas Multiple Listing Service. Through it, your home’s listing in the Las Vegas MLS is far and away your most potent advertising tool. Although today, this seems so obvious that it’s barely worth restating, in important ways that’s a relatively recent development. The Why and the How of today’s listing availability provides an interesting peek ‘under the hood’ of how 21st-century real estate works. Back in real estate’s medieval past (before the Web reached everyone—say, 20 years ago), Las Vegas “listings” took the form of printed sheets distributed between cooperating real estate brokers and agents. They were headed by mug shots of the properties, sometimes—when there were printing issues—less than flattering reproductions. But even that practice was a modern development. Early in formation of the United States, groups called “Real Estate Exchanges”—the antecedents of today’s Boards of REALTORS®—would meet on appointed days to exchange lists of properties their clients wished to sell. In practice, these meetings would often become auctions, with brokers bidding on behalf of their principals for properties they wanted to buy from other brokers. It was only at the beginning of the twentieth century that the word “multiple” was sometimes applied to the “listing” of properties; but by the Roaring Twenties, the advantages of “multiple listings” were widely accepted. The difference was that now brokers cooperated to combine their separate portfolios of client offerings into integrated master lists…which usually translated into all those sheets of paper in the “orderly collections” of binders on the shelves and in the briefcases of real estate pros. Orderly or not, it took a lot of diligence to keep everything current… It was a far cry from today’s Las Vegas listings, which can be summoned up instantaneously on computer screens in homes and offices anywhere. Actually, on phones and tablets, no matter where they are! When you think about it, the technology has fundamentally changed the nature of how listings are used. Instead of being information that had to be gathered and shared by real estate professionals who would physically gather for that purpose, today’s MLS listings are available to be inspected and compared by you, the client, yourself—with your REALTOR acting as expeditor rather than limiter. It’s the real estate professionals who make sure the parts of the listings on public view are as accurate as possible, and who guide clients all the way from their discovery of the most likely candidate properties through visiting, negotiating, and closing on their next Las Vegas home. The upshot is that today’s Las Vegas listings are all right here, right now. And as soon as you find the ones you’d like to look into further, I’m right here—standing by for your call!
Categories
Recent Posts
