Las Vegas Listing Inventory (homes for sale) has risen dramatically since the first time buyer tax credit. While I may be convoluted with my thinking as to whom I am working with (mainly investors all of a sudden) I had to go check GLVAR's listing stats and see if the "Shadow Inventory Fairy" paid us a visit. NOPE!
It is because buyer demand is DOWN DOWN DOWN! Not down horribly bad. I took a peek at August's numbers (I don't pull my Las Vegas Real Estate Market Report stats until the middle of the month due to late reporting by list agents!) Sales are pretty strong for August (in fact stronger than I thought) and are so far coming in at over 3500 closes. Listings have dropped slightly and pendings have risen slightly so that is all good.
When I checked the new listings on the market, we rose slightly in June (but still down down down when you compare to 2006, 7 and 8). July's new listings on the market were well below June 2006-2009's numbers. We are still anxiously waiting on August's numbers.
I had my one and only first time buyer send me 10 listings last friday. They were all still available on Tuesday when we went searching. This would NOT have happend from January 2009 to May 2010. What would have happened is that 4 would have changed to contracted status and another 4 would have multiple offers and 2 would be damaged so bad that they wouldn't be eligible for financing (which 2 were ineligible for financing.) BUT HOORAH! We still had 8 to choose from!
What this boils down to is more concessions for first time buyers like I explained in the video that I did a while back in anticipation for this moment.
In May I predicted we would go from a seller's market to stable by December. In July, I moved that prediction up to Oct/November. Now I move it back to Nov/December!
First time buyers, if you feel like you missed out on the tax credit, do not feel bad. You can recoop that in lower prices (yes we are having slighty declining prices in some areas) and by getting your closing costs paid (which was a little harder to do with 20 offers on the same property during tax credit time!)
Call or email for your consultation today!
Those inventory numbers are rising everywhere and there's an amazing number of properties being held off the market by banks, fdic, fannie and freddie. It's going to get worse before it gets better.
Renee - Wow, you are flip flopping. Sorry, the market is flip flopping. Our inventory is up too. Buyers are going back to the fence though. Just no hurry.....snails pace. Until I get a client interested in a property THEN it goes to escrow.
Thanks for the news.... of your area.
Have some time off this weekend and enjoy. I am sure the water park will get your interest.
Have I told you lately how much I love reading your posts?! You do the best job at pulling the interesting data out of the seemingly endless cavalcade of statistics that we have available...
As for my thoughts on the matter, yes, we unnecessarily accelerated the sales cycle pushing future buyers into the current (spring) market only to pay for it in the future. I think until interest rates begin to creep up, there will be no sense of urgency for buyers.
Renee: Terrific post! Not great news in it, but well presented. Our Austin area has seen a lot of similar things happening, but sales are even slower here. Seems like the people who waited until the last minute and lost, gave up the search.
Yes Ma'am I think we did......at least in Roanoke I think so.
Renee.... not only can the recoup some of their monies with lower prices, but much lower rates. Almost a whole percentage point lower. That alone is incredible... but I blame a lot of this on jobs and how the governmet isn't helping small businesses. In regards to the homebuyers tax credit itself? In my opinion, it didn't help as stated ... I would bet that only 3% to 8% of those buyers went out and bought because of the tax credit... the others? Were going to buy in the next 2 to 12 months anyway. Many experts agree with me on this, but the gov't has sang another tune. Good post here.
Renee, I think we did expedite the late summer/fall closings with the tax credit. You are right in saying that buyers will still miss out. The interest rates are unbelievable, inventory is up...what a PERFECT time to buy! Great blog, as is expect from you :)
Renee, I think we did expedite the late summer/fall closings with the tax credit. You are right in saying that buyers will still miss out. The interest rates are unbelievable, inventory is up...what a PERFECT time to buy! Great blog, as is expect from you :)
Renee, I hear that there are rumblings about bringing this back. If they do, remember to market to move downs, move ups and move across towns this time. I feel that far too many agents marketed to the low hanging fruit and failed miserably on the other end...
Renee, you are a natural in video. . you should do that more often.
Great stuff. Great to hear your voice/see you in action. Very cool. And, super point about now you can actually save more than the $8,000 credit. That is such an important aspect to highlight. I'm sure most potential buyers don't realize that.
What props are your investors looking at? The distressed props or just looking for great deals? Are they going to rent these props and then resale in a couple of years?
Cal
Here in Manhattan we have seen the seasonally slow summer market in effect. The beginning of September is essentially the second selling season of the year other than Spring, possibly in Vegas the increase in listings and lack of demand is somewhat a function of the natural selling cycle now that the tax credit isn't in place.
Renee, With interest rates floating like a feather downward buyers are winners.
Steve
Renee - Love, Love, Love the video presentation. I'm a visual person and I think the break down for buyer's is AWESOME!
Multiple offer situations are definitely not as bad as they use to be in my area, but I've still been encountering them over the past two months. I can't wait to see what our sales are for August along with yours. Can I count on a tutorial on how to create a video presentation? Also can you do the voice over for it?
Renee I think our housing market has a long way to go before we see real improvement. Just too many confused economic indicators. Keep the great posts coming. Renee when do you sleep?