Las Vegas real estate in 2012 will no doubt be a wild and wacky and an unpredictable market resulting in broken crystal balls as it has been for the last 5 years. This I am sure of. My 2012 Las Vegas real estate market trends predictions will depend on several factors:
- Steady interest rates
- Steady underwriting guidelines (LOL!)
- Current laws
- Current market conditions
The reason why I say "current laws" is because right now there is a new law (implemented Oct 1, 2011,) called "AB 284" which is beginning to hurt our inventory situation. I would NOT go out on a limb and say it is the sole cause of us having low inventory right now. As you can see, we had extremely low inventory PRIOR to Oct 1, 2011.
High buyer interest coupled with low interest rates and super low home prices is also depleting our Las Vegas inventory.
Just to give an example how dire our inventory situation is - I pulled stats on the 15th of February - today - 8 days later (22nd of February) - we have 300 less units. Unless something drastic changes in the next several months (AB 284 gets repealed, buyer interest wanes,) I expect inventory to plunge even lower. How low will we go in 2012? That remains to be seen!
Even with very little inventory, we haven't seen HUGE increases in prices at all even though we are teetering on an EXTREME seller's market as far as inventory goes. Then again, Las Vegas has become well known to break ALL laws of supply & demand during this tumultuous real estate market. This post is purely about inventory - the next post will be my pricing trend predictions for the Las Vegas Market in 2012 - stay tuned!