The Winds of Change

When I first started selling Real Estate about twenty years ago the Las Vegas Market was rather boring. Oh, to have those days back. Property only appreciated about 1% to 2% a year and there was usually only one Buyer for a house.



Then, kaboom, about five years ago the Market starting appreciating by leaps and bounds. We all were shocked. The investors came in droves to purchase. They did not buy to rent as in the past but to flip it. After all, flipping was the big thing on the home improvement TV stations. I think those days could be compared to when there was gold in them thar hills.



I don't know if the gold dried out as quickly and as much as our Market, what a roller coaster. When the decline started short sales began popping up. But when the Banks never closed the sales the foreclosures began to take over. At first the Bank's resisted going to low on their prices and poo pooed offers that they felt were not sufficient. For example, I wrote an offer for a Buyer on a property and we were practically laughed at. Well, the joke was on the Bank, because by the time they got it sold to someone else it was for about $20k less than we offered.



Most of you know that we are the foreclosure capital of the U.S. In order to get these properties sold and I add usually they are in terrible condition, the Banks finally had to get realistic. And, now most houses are down by about a $100K and many down about $200K. It doesn't seem possible, but that is what has happened in Las Vegas.



Then, this last month we have seen many multiple offers on properties under $300K causing an upsurge in prices. However, how much is not clear yet. By the numbers I just gave you, you can see we have a very long way to go.



The investors are back. In June, 2004 investors made up 39.4% of our Buyers and this last June they made up 37.5% for the second highest June this decade. There is a change however, The investors are now purchasing to rent instead of to flip. Source: In Business Las Vegas, Brian Wargo, week of July 31-Aug. 6, 2009.



After reading this cheerful blog you may feel like you need an outlet for stress. Well, here is one. I just watched a movie called For Your Consideration. It is done by the same folks that did Best In Show. All I can say is that these people have terrific senses of humor. It is about a low budget film being made in Hollywood called Home For Purim. If you want a laugh, rent it. You will find yourself chuckling at the silly satire.