The most common questions I get daily are: Will there be a housing bubble and is now a good time to buy? Let's talk about a potential housing bubble as for many of us it brings back some negative memories from 2008 to 2012. A housing bubble is not likely as demand still outweighs the supply of homes and this upcoming recession is not being driven like the 2008 housing meltdown. I believe that we have set a new "floor" on home prices in Las Vegas. I just don't see the entry-level homes and condos that have sold in the last 6-12 months for $300k to $500k coming down. Is it possible that buyers' who bought brand new track homes for $1 million to $3 million see an adjustment down, absolutely, but then again, that only matters if they want to sell now. Most buyers over the last several years have interest rates in the 3% range which would give them more of a reason not to sell, which keeps the inventory of homes "For Sale" lower. You are probably aware that 30-year fixed interest rates are now in the range of 6% to 6.5%. Obviously, that is a big jump from the 3% rates we have been accustomed to the last 2+ years, but this is the new reality. Buyers on the fence will likely regret waiting as more interest rate hikes are forecast and if we are fortunate enough to see rates dip back down below 6% or even 5% they would then have the opportunity to refinance.
I hope you all are having a great summer and please reach out to us for all things real estate.
