Las Vegas Homes Sales Up
Reasons Home Sales are up in Las Vegas
Many believe that home sales went up in June in Las Vegas due to the overwhelming number of Southern California investors that returned to the area to find deals on single-family homes. The number of investors seen in the Las Vegas area in June of 2009 when compared to June of 2008 was 35% higher.
Steve Bottfeld the executive vice president of Marketing Solutions stated, “Real estate has always been a good investment, and right now it has never been better from a residential standpoint,” … “I just wouldn’t invest in commercial because it is about to go through what residential already has.”
The research provided by DataQuick showed that Las Vegas property investors of both new and existing homes in June were 37.5% of the buyers. By their records, this is the second highest June during the last decade when comparing investor purchased homes, second to June of 2004 at 39.4%. Henderson homes and homes in Summerlin were also big gainers in the push for Las Vegas property investments.
Bottfeld went on to explain that the investors you are now seeing in the buying frenzy are now the same as the ones that were buying and flipping property. The investors in Las Vegas today are the ones that are looking for long-term real estate income. “It makes sense because if someone can buy a home for $100,000 in cash and rent it for $1,000 a month, that equates to a 12 percent return before taxes and other expenses are included, … “even getting an 8 percent return is better than the 2 percent they might get at their bank.” He stated.
Glenn Plantone a realtor and president of the Real Estate Insiders Club explained that investors are taking advantage of the huge drop in price the market is seeing in existing homes such as homes that were selling for around $300,000 are now going for close to $110,000. “They are buying them for cash flow;”…“We are not even talking about appreciation potential.”
Plantone went on to explain more about the rental market, “It is a lot easier to rent houses than condos,” … “We are getting people who are walking away from a $2,000 a month home payment and going across the street to rent a home for $1,200 in immaculate shape.”
Plantone stated that he has been working more with Southern California investors that have several hundred thousand dollars to invest and have been sitting around waiting for just such an opportunity to present itself in real estate.
Robyn Yates, the broker-owner of Windermere Prestige Properties said that she is seeing foreign buyers as well, many from Asia that are buying homes without even seeing them in person.
If this trend keeps up in Las Vegas, all those homes on the market will be in the hands of investors and new homes sales will certainly be on the rise. Does this trend mean that all those ugly Las Vegas foreclosure stories we have been hearing will soon be a thing of the past and the real estate market will begin healing?
10 Comments to Las Vegas Homes Sales Up
Comments
Nice writing. You are on my RSS reader now so I can read more from you down the road.
Allen Taylor
I think it’s entirely possible that prospective home buyers are leaving San Diego and heading to Las Vegas again, since it’s so hard to buy a home in San Diego right now. The reduced prices have created a feeding frenzy for entry-level houses and condos. A lot of people are looking to buy homes before the first-time homebuyer $8000 tax credit expires at the end of November, and many people are getting desperate.
Great achievement you did to increase the sales.I will follow the guidelines to making the more sales.
It’s to hard to buy a house here in Vegas i’ve put in about 12 offers and all these F>>>>> investors are paying cash… I don’t think it’s fair… Let people buy houses too.
I agree with Geoff on the tax credit frenzy about to expire. At least this news is positive.
It is difficult as a homeowner to be up against investors who are paying cash. There’s a house on my block that was up for sale and there were numerous offers. Unfortunately none of them got the house it went to an investor that made a cash offer.
I’m a broker in Central Cal., and I have a personal friend who is/was a realtor in Las Vegas during the “hayday.” He primarily used internet marketing tools and would have 18 homes in escrow at once. I sure hope that things are turning around as you indicate buyers are looking for long term investmenst as opposed to the southern Cal investors looking to “flip properties.” We need some normalcy to this mess.
I think sales will start to increase across the country as we come out of the recession. People are starting to buy because the prices on housing are too good to pass up.
Bravo! That’s a good performance in terms of home selling. Keep up the good work! Nice post that gives the real picture on how to become productive in real estate business! Good job!
Let prices fall so people will buy them up. That’s what I’ve always been saying. This flood of foreign buyers and investors will without a doubt get the kick-start vegas and henderson need to get rolling again.
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