Housing experts say time to buy is now

Q: I'm wondering if you're seeing more people like my friends and family members, who've been talking about buying a home for some time but don't seem to be doing much about it. Don't you think there are more of these "fence-sitters" today than ever before?
-- Chuck J., Las Vegas

A: I don't have any statistics on this topic, but I suspect you're right that there are more would-be homebuyers sitting on the sidelines today than any time in recent memory.

In fact, this situation has become so important that the National Association of Realtors has launched a nationwide public awareness campaign aimed at getting potential buyers off the fence and into a home. You can see this campaign at realtor.org/pac.nsf/pages/fencesitters.

As NAR's campaign points out, homebuyers should make decisions based on the needs of their own families, not based on national news reports. As anyone in this industry can tell you, all real estate is local. And local market conditions vary dramatically around the country.

Southern Nevada is a classic example. While our high foreclosure and unemployment rates have made national news, few people outside of Las Vegas seem to know that we're selling homes at a near-record pace, with many of them selling for less than what it would cost to build that same home today. Meanwhile, local home prices have largely stabilized after falling for a few years following our historic housing boom in the middle part of the last decade.

NAR Chief Economist Lawrence Yun addressed this issue in a recent column.

"Those potential homebuyers who have been waiting for the true bottom will come to understand that we are pretty much there already," he said.

"With interest rates expected to rise, such 'fence-sitters' could start to make the move into buying. Indeed, quick-footed investors have already done so. The 'smart money' of investors, since they have an option of putting money in other instruments like gold or stocks or bonds, has been increasingly chasing real estate since late last year -- and those real estate purchases have been mostly all-cash transactions. Investors recognize the already great bargains in home prices and the potential for rent increases."

With unemployment levels high and consumer confidence low, I understand the temptation to sit on the fence. I know many would-be buyers here in Las Vegas are wary about when the local economy and home prices will bounce back. But the problem with sitting on the fence is that you can stay there too long. Odds are, mortgage interest rates won't stay at these historically low levels for very long.

And strange as it may sound in this housing market, the selection of homes is already getting tight in some areas. This is especially true with local condos and homes priced below $100,000 and with homes in popular planned and established neighborhoods. For example, I live in an established and centrally located neighborhood of 384 homes. Last time I checked, only five of those were available and listed for sale.

I'd encourage people to be as prepared as possible for the day they find the right home. Do some online research. Visit open houses. Ask a real estate agent with experience in your area to keep you posted about listings, sales and market conditions.

You may also want to assemble the financial documents you'll need to apply for a home loan and find a qualified and experienced mortgage broker or lender who can prequalify you for a loan.

Paul Bell is the president of the Greater Las Vegas Association of Realtors and has worked in the real estate industry for 30 years. GLVAR has nearly 11,500 members. To ask him a question, email him at ask@glvar.org. For more information, visit lasvegasrealtor.com.