Las Vegas Homes – The State of Real Estate in Las Vegas
Las Vegas homes have not been this cheap in 15 years. Mortgage rates are at a historical low. The selection of houses for sale in Las Vegas has never been more abundant and varied. Bargains and incredible deals on Las Vegas condos and homes have never been more widely available.
Fear is gripping the market still. Stories about families struggling to hold onto their homes, fighting rate hikes, quietly considering to walk away, foreclosures, short sales, swiftly abandoned homes are splashed all over newspapers and television news.
Indeed, the plight of the Las Vegas Real Estate market is scary. However, we should not overlook the fact that it was created by events happened many years ago by now and the current state of affairs on the ‘Las Vegas homes for sale‘ front is by no means an indication of what things will be like two or five years from now.
During the boom years of the late 1990s and early 2000s too many people purchased too many overpriced Summerlin homes and Henderson homes and Las Vegas condos with financing that was temporarily affordable for them, but the long-term affordability of all these purchases hinged on the unquestioned assumption that the already overpriced properties will continue to appreciate in value.
They did not because they could not have – there was no way up any more. In theory, the sky is the limit, but in reality people can only spend as much money on homes as they make. With a median household income of around $50,000 in Las Vegas, Nevada, there are simply not enough people who can afford houses that on average are priced at $315,000 as they were at the peak of the bubble in 2005.
However, homes priced at around $150,000 are much more affordable, especially if financed wisely with conservative and simple fixed-rate mortgages as most mortgages in this post-bubble hangover are structured. Under such conditions, buyers entering this collapsed market with ‘clean’ finances and newly found financial wisdom have a lot to gain, especially in the deeply sunk markets flooded with brand new or ‘almost-new’ Summerlin homes and Henderson, NV homes that often come with a variety of amenities and features that are rare and expensive in other regions. While Las Vegas markets offer great opportunities for first-time buyers, current homeowners with homes that they had owned for longer periods can also find great upgrade opportunities as the more upscale segments of the markets have suffered even more damage in the downturn.
In the midst of our long unhappy real estate ‘winter’, we also tend to forget that Las Vegas is a great place to live with most of our communities having built with the objective to maximize all the beauty and great potentials that the region offers: the warm climate, the abundant sunshine, the beautiful scenery and natural landscape. These special qualities are here to stay and with all the economic, financial and market conditions slowly falling back into place, the state and region is destined to become once again what it used to be: a ‘dream-come-true’ place to live for many of its residents. After all, it is not by chance that its real estate market became so over-heated in the boom years.