I know most people are wondering what is going on with the Las Vegas housing market, and whether now is a good time to buy.
The most important question you need to ask yourself is: Do I need to move?
If the answer is yes, now is a great time for you to buy, as we are in a buyer’s market with lots of homes to choose from! This means buyers are in the driver’s seat and can negotiate for more.
If the answer is no, maybe it is best to wait it out. No one can tell you with 100% certainty what this market will do, so if you’re comfortable there is nothing wrong with waiting.
When talking with buyers, I am frequently hearing two things: I’m waiting for the market to crash, or interest rates are too high.
First things first, the market that we are in currently is not the same market we were in in 2008 during the housing crisis. In 2008, buyers that were underqualified were receiving loans for homes they could not afford. Many buyers went into default because of this, and that is when we saw the housing crisis.
Right now, the fed has increased rates to help curb inflation which slowed the housing market down. With this shift, we saw the market STABILIZE and we are finally in a healthy market, with homes selling for market value instead of outrageous prices over market value, like the last market.
Secondly, Interest rates are not at an all-time high. Looking back a few decades, rates had hit over 16% in the 1980s, and rates were around 8% in the 1990s (source: Mortgage Reports). Historically, when rates go up, they ultimately will go down at some point, or the other way around. Although rates are higher than they have been, mortgage experts are expecting rates to come back down. If you need to purchase a home, or you found a home that you love, purchase it now at a higher interest rate and refinance the home when rates come back down.
Ultimately, if you are looking to purchase a home soon or need to purchase a home, find the home you want to marry, and date the interest rate! You can break up with your interest rate later, but you can’t find the same house that you loved at the price you want months later.
Call me to discuss your situation, and I’d be happy to talk through your options!
