Las Vegas Sales up 15% and new Home Buyers Tax Credit

The Month of February has been as busy as January in the re-sale Housing market.
Sales are up 15% in the last quarter of 2008 and I expect to see the same pattern in the first quarter of 2009. I am seeing many first time buyers taking advantage of the new pricing and interest rates in the low 5% range and even high 4% range over the past two months now. I have also experienced more calls and requests for relocation materials and information than I had seen in 2008. This level of relocation interest may be showing that housing affordability has reached a level that will create new growth in our city again. I am optimistic as usual that the housing market will recover next year, but that depends if the new administration in Washington gets more proactive in the housing sector. If they do more with the toxic debts that the banks now hold to buy it off the banks’ hands, we can see a recovery much quicker, and inventory levels will plummet quickly as well. I do not feel that we will see appreciation growth into the 10% range again until 2012, but we could see 3-4% as early as late 2010 or early 2011.

There is, however, some silver lining showing on the horizon. According to a recent article in Forbes.com, “Motivated sellers in Las Vegas accounted for 64% of sales in October, the highest rate in the country. Home sale prices from last year are down 28%, but home sales are up 15%. That means buyers are getting deals and hastening Las Vegas' recovery.” I’ve included the link to the full article, as well as how the Stimulus package will impact home buyers.

Buyers in this market need to weigh in on what it will cost them to buy now at these all-time low interest rates vs. if the housing market should continue down another 5-10. Over the life of a 30 year loan, a buyer paying .5% higher interest rate will usually cost them more than if the home went down 30 or 40K. Buyers should also consider the tax implications of putting off buying and renting as well. Higher tax bracket income earners are loosing valuable tax breaks while renting. As one of my recent clients said to me recently as they closed on their new home “I need to start living a settled and permanent life with my family to be able to enjoy each day instead of wondering when I may get a notice to vacate my rental home. My wife wants to paint walls, hang curtains and plant a garden, these are things we have put off just renting and not owning. The rest of our settled lives begin NOW.”

The Stimulus package has been approved, and I will blog on what exactly it will mean for home owners and the housing market again in the next few weeks, as more credible information unfolds.

If you are ready to Buy or Sell call me for a no obligation consultation.

Have a great Valentines Day!!

Dulcie Crawford