The current recession has caused property values to decline severely nationwide and Las Vegas leads the Nation with a 40-60% drop in home values. . Homes selling typically for $180/sf in 2005 are being bought up as REO's (foreclosed Real Estate Owned by banks) at as low as $60/sf. Buyers are now comming back into the market. Banks are now experiencing multiple offers on the lower end of the market. These properties have an immediate cash flow for investors or offer a once in a lifetime opportunity for owner occupied home buyers.
Las Vegas has been known for its boom and bust cycles and has recovered each time. This cycle has experience an unprecedented fall in prices on the heels of years of over speculation. Prices have been pushed ever lower as trustee sales in Las Vegas alone typically list 500 properties for sale each day. Ironically, the inventory of unsold homes actually has actually decreased over a third from the all time high in 2008.
The Las Vegas market has two market segments: below and above $200,000. Both have their own market influences and attributes. The low end is especially attractive to the local work force, retirees and cash flow investors. This segment is experiencing a high volume of activity and prices are firming. The upper segment was hit hard by the recession. Buyers anticipating a continued increase in property values were unable to flip their investments as the market went into a tailspin. These homes had the largest price drops and are slower to recover due to their limited appeal to local workers on moderate income, but have the best chances for appreciation once the market recovers .
Whether you are an investor or just looking for a home to buy, this is opportunity to buy a piece of Nevada. For Nevada residents, there is no state income tax: a refreshing thought for Californians. If you need a broker with an eye for available real estate deals in this fluid environment, let me help. Call (805-453-4295) or email countycom@cox.net .
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