Expert: Diann Tonnesen - 7/7/2009

Question
Diann,

How are you? My name is Kenneth and I have some questions regarding las vegas real estate:

My wife and I are thinking of buying a place in Vegas...I know Vegas properties have dropped almost in half now... do you think it is a good timing to buy or price is in freefall? Do you see the price climbing back soon?

Also in Vegas, where do you recommend to buy? should we pursue forclosure deals?

many thanks,
Kenneth

Answer
Hello Kenneth!

We are telling everyone we are having a half price sale in Las Vegas!  :)  

Yes, prices have come down about 50% all over the Valley. (Or up to 60% on the higher end properties.) But it looks like perhaps we have found the bottom. Things seem to be stabilizing and we are seeing multiple offers on almost everything under $250,000. Housing is affordable for first time buyers, finally, and they are all trying to cash in on the federal tax credit by the end of this year. And investors are finding that cash flows and return on investment make sense again.

Prices are literally back at about 2001 levels. They fell even further than they rose during the boom years. Sales volume in May was actually almost as high as the best month during the boom years as well, and our inventory is half of what it was last year at this time. Here is a great link detailing comparitive monthly sales activity since 2004 that you will find interesting: http://www.lasvegasrealtor.com/stats/PopWindow.asp?file=Comparative_Stats.asp

In order to give you better advice on where to buy in Las Vegas, I need to know more information about your goals and needs. Is this property to be used as a primary home, vacation home, or rental property? If primary or vacation home, what amenities are you looking for in the immediate vicinity? (fitness centers, pools, golf, gaming, hospitals, restaurants, retail, etc.) What is your target price range? Size requirements? Do you prefer condos, high rise or single family residences?

As far as buying foreclosures, foreclosures are all listed in our regular MLS system along with "real" sellers, auction properties and pre foreclosures. If you go to http://www.greatlasvegashomes.com/las_vegas_homes_for_sale.htm you can surf all the current listings that include the above categories for yourself. (Word of warning, auction properties are listed FAR lower than what they will sell for and may give a distorted view of actual prices. We recently had a lovely 2 bedroom 2 bath condo in a gated community that was listed at $19,900. We had almost 100 calls in one day on it. It ended up selling for $90,000.)

Of course, you can't really tell what areas are like unless you know the Valley, but if you can give me more information about your wishes from the questions above, I can pinpoint properties for you to look at. I can also send you information on property taxes and insurance if you'd like.

I noticed that you are writing from China. If you are a citizen of another country, financing can be a bit tricky. Currently there are only a couple of lenders to work with on foreign national financing. Will you need assistance with that or will you be paying cash?

Let me know what other questions you have - I am sure there will be more! And shoot me back the answers to the questions above, and I will help you target specific neighborhoods that should suit you.

Have a terrific day!