"If we stopped listing homes, we would run out of inventory..."
Las Vegas, NV (PRWEB) June 07, 2013
Jared Jones, Nevada’s number one selling real estate agent by volume, has some advice for those currently in the Las Vegas housing market: Now is the time to sell, and buyers had better be prepared!
According to Jones, even with the uptick in home sales across the nation, Nevada’s foreclosure rates remained one of the worst as banks started the foreclosure process on one in 320 homes. He said, “What might at first seem like bad news is actually welcome news to homeowners looking to sell. Currently the Las Vegas market is a seller’s market, with the average home price skyrocketing 25% over the past 14 months.” Housing inventory is so low that it led Jones to recently proclaim, “If we stopped listing homes, we would run out of inventory in just 1 month at the current pace of buying.”
How can a market with the second highest foreclosure filing rate in the nation and the second highest mortgage delinquency rate in the nation have no housing available? According to Jones there are a few reasons. In the current Las Vegas housing market, and across Nevada, foreclosure starts do not necessarily constitute “foreclosure finishes.” Low inventory coupled with the fact that large Wall Street hedge funds like Blackstone Group have now arrived in Las Vegas for “Buy to Rent” buying sprees, is currently making Las Vegas a tough place to buy a home. This situation is music to the home owner’s ears after the past several years, and what really makes the current market great for sellers is that the median household income is $53,000. This causes the majority of the market to buy under the $225,000 price point, which is exactly where most of the buy to rent hedge funds are looking.
What’s great for sellers is discouraging for buyers who are competing with Wall Street brokers. “This past week, I added a home into the multiple listing service in the under $200,000 price range, and had 2 cash offers in less than 30 minutes of submitting the listing on the market!” says Jones. Jones tells his agents that when dealing with buyers they almost have to become motivational speakers to keep up the spirits of those individuals who spent years unable to buy a home and now can’t compete in a hot market.
Jones doesn’t think buyers should get completely discouraged. There are things buyers can do to prepare themselves to succeed in this type of market. According to Jones, buyers will want to focus on saving. Additionally, Jones recommends coming in aggressively on a written offer. “It goes against everything in us as buyers but remember this – in a market that is jumping in price very rapidly, time is not a buyer’s friend. The more you wait, the more you pay so it’s important to love the house, but be aggressive enough to get it.”
Jones also has a cautionary note for sellers, “Pitfalls await sellers, even in the current market. Sellers may think they have a huge equity check on their home, and then the appraiser shows up. Sellers make the mistake of thinking that it’s over just because there is a number on paper, and nothing could be further from the truth. The offer isn’t good until it’s backed up by the bank’s financing. Their qualifying of the property itself and the value must be considered in advance, or else sellers could get far less than they bargained for.”
For a free over the phone or in home consultation to learn what a home would sell for, please call Jared directly at 702-496-5000. Not ready to call? Get a Free Report called “7 Critical Mistakes that Home Sellers Make that Are Completely Preventable.”
ABOUT JARED JONES
Jared Jones has been the #1 selling real estate agent by volume in Nevada since 2010. He is the CEO of Horizon Realty with locations in Las Vegas and Henderson, Nevada. For those who want to do a bit more research, visit http://www.JaredJonesRE.com.
Contact Jared Jones at 702-496-5000