When it comes to getting the most out of the appraisal process, preparation is key. It’s also important to understand that appraisers are focused on the condition, function and features of the home to ensure the property is appraised at full market value.
It’s shocking how fast things change in the local real estate market. Is it time to accept that the housing bubble has officially burst and we’re headed for another collapse like 2007-2008? I can see the eager investors now, licking their chops and rubbing their hands together excited, waiting for values to crash so they can swoop in and cash in on deals, like before. Well, don’t begin to drool yet expecting a crash; I think a housing correction is what we’re witnessing.
In 2021, Las Vegas experienced its most frenzied market in years. Any agent could put a house on the market and it had a considerable chance to sell. But, with the shift in supply and demand 2022 has presented, today’s sellers are experiencing a more competitive market. Making the choice of who you select to represent you and present your home to the market is more important than years past.
We’ve had quite a real estate ride in Las Vegas since the early 2000s. Realtors who have navigated market conditions through recessions, foreclosure crisis, pandemics and extreme appreciation or depreciation are going to have experience, and their versatility and savvy will show in their online reviews.
With all construction, whether it is residential, multifamily or commercial, we are entering a new normal, and we won’t fully know what that normal is for a few years to come.
The good news is as interest rates rise; home valuations begin to stabilize. Inventory is also beginning to increase, a move that typically makes it easier to buy a home. In fact, Realtor.com estimates active listings will grow 15 percent this year and home sales are “expected to hit their second-highest level in 15 years.”
Overall, Las Vegas is still one of the country’s hottest real estate markets, as people from all over the world come here to live. Real estate is a long-term appreciating asset, just make sure to set your expectations and be aware of the changing marketplace.
The Las Vegas real estate market captivates and intrigues us, in part because it’s never boring! Right now, the market enjoys the confluence of continued strong demand, job creation and business diversification. Those who proclaim that prices will fall simply because mortgage interest rates have risen are ignoring the ongoing contribution of job creation and economic diversification.
Collaborators Darin Marques, founder of the Darin Marques Group at Huntington Ellis, and Heidi Carlsen, home staging expert with Stately Home Staging, have their fingers on the direct pulse of Southern Nevada luxury real estate and understand just what helps sell these properties to high-earning individuals. The answer lies in the presentation. These two partnering experts weigh in on the key elements of home staging and what it means for both the Realtor and designer standpoint.
There are multiple factors that go into having the ideal at-home setup such as understanding how much space you need, the location in the home, whether to incorporate a digital element, the aesthetics of the space, and even soundproofing.
As the rates begin approaching pre-pandemic levels, they are still going to remain within a record-low margin. Southern Nevada’s 30-year fixed mortgage rate is currently averaging 5.1 percent. The 15-year fixed mortgage rate is averaging 4.2 percent and the five-year adjustable-rate mortgage (ARM) is averaging 3.5 percent. Compared to 15 to 20 years ago, we were seeing rates as high as 8 percent to 10 percent.
As the rates begin approaching pre-pandemic levels, they are still going to remain within a record-low margin. Southern Nevada’s 30-year fixed mortgage rate is currently averaging 5.1 percent. The 15-year fixed mortgage rate is averaging 4.2 percent and the five-year adjustable-rate mortgage (ARM) is averaging 3.5 percent. Compared to 15 to 20 years ago, we were seeing rates as high as 8 percent to 10 percent.
As for prices, I again do not expect much to change. Resale closing price appreciation may soften slightly, but basic supply and demand again points to more of the same. With new homes, dramatic increases in land and material costs will mean that price appreciation in that sector will continue and builders and buyers will have to continue to adapt.
Despite the many challenges we have faced in the last few years and uncertainty from recent global geopolitical events, I don’t anticipate the demand decreasing. In fact, I anticipate the market outlook will look pretty similar to last month’s and will remain stable over the next few months.
We are in the heart of a historic time for our local luxury market. There were more homes sold over $5 million in 2021 than any other year in our history. Forty-six homes sold over $5 million in 2021, marking a nearly 60 percent jump from 2020 alone.
