Warren Buffet, one of the most successful men financially of all time, says when people are scared to invest, that’s when he sees OPPORTUNITY spelled out in shining lights and starts buying. At this very moment when it comes to real estate, a buying opportunity exists that we have never experienced in our lifetime.
Currently, interest rates are at the lowest point they’ve been in 60 years. Couple that with the fact that homes in the Las Vegas valley are priced at the lowest point we’ve seen since the 1980s. And on top of that, this is the first time we’ve dipped below 10,000 homes available on the market in the past six years. Right now, of the 22,000 homes on the market, 12,800 of them are under contract.
These kinds of numbers are adding up to a windfall for investors. For a payment of several hundred dollars a month, many investors are realizing cash flow of $500 – 1,000 a month. And they are buying. The fact that inventory has steadily been decreasing is proof in the pudding. Another reason for the decline is the banks are a bit reticent to foreclose on homes at the moment due to the bill AB284. That equates to less bank owned homes coming on the market and thus, less available inventory.
So what does a decrease inventory mean to the consumer? It will only stay a buyer’s market for so long. We are already seeing the multiple offers all over town and when demand becomes greater than the available inventory, Las Vegas will revert back to a seller’s market.
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