As I had said earlier this year, the spring buying season really did kick off on January 1st.
We all knew that interest rate hikes were around the corner to curb inflation, but I don’t think any of us could truly predict the wild ride of the first few months of 2022.
A Russian invasion of Ukraine, skyrocketing gasoline prices, and feeling the brunt of our economy’s inflation have been the story of the first quarter of this year.
Here in Las Vegas, there have been the realities of helping buyers get into homes among stiff competition from cash offers, appraisal waivers, and homes selling for several thousand dollars above the “suggested list price.” I would love to say these are just issues that come up with resale homes but the truth is these circumstances have now become part of buying a brand new home as well.
So what happens next?
Here’s what we do know. Interest rates are scheduled to have SIX more rate hikes this year alone. Yes, you read that right.
This past week was the first interest rate hike in over three years. What has been a time of record low-interest rates and fantastic buying power opportunities for those in the market to purchase…that’s just not the case anymore.
Rarely do we know with the utmost certainty that rates will be climbing not only to curb inflation but to also help cool down the current runaway train of a real estate market. Although, don’t expect any train crashes…record low inventory and strong buyer demand are what have fueled this market up until now and the reality remains the same is that there are just more buyers than there are houses to purchase…and that may not change for another 3-5 years here in Las Vegas.
My suggestion? We are your resource. If you are reading this and you are thinking about buying or selling real estate in Las Vegas. Get on the phone with us now so we can either get you into a brand new home or resale or sell that beautiful home now while buyers are still able to get a great rate on the home purchase.
We are here to help you.
Yours in New Homes,