Las Vegas

THE MARKET IS COOLING – IS NOW A GOOD TIME TO BUY?

November 14, 2019

Las Vegas is experiencing slower price growth and a significant drop in interest rates compared to this time last year.

Currently, the average 30-year fixed rate is 3.61%, sending rates back into the historically low territory.

Lower rates coupled with slowing housing prices mean more affordable mortgage payments for homebuyers considering an end-of-year purchase.

BOTTOM LINE: IS NOW A GOOD TIME TO BUY?

New home builders reported 2,500 net sales for third quarter of 2019, and that is up from the same time one year ago.   Overall, the cooling Las Vegas housing market has increased opportunities to negotiate great year-end deals with builders looking to move inventory.

WHAT ABOUT ANOTHER HOUSING BUBBLE?

A housing bust on the horizon for 2020 is unlikely, according to a recent article in the Las Vegas Review-Journal, which analyzed some of the most recent new home statistics and found today’s market on a much stronger footing than a decade before. That said, it also noted a decline in price growth. But a decline in growth doesn’t mean a decline in home prices. Prices are still rising – just not as quickly as this time last year. But as we stated before, the slower growth in prices may have spurred a growth in recent sales. So, the current market might just be finding a nice balance at the moment.

The article summed everything up by stating “The slower price growth, with a drop in interest rates since last year, bodes well for buyers by making homes more affordable, or at least not as expensive as they could be.”

So, if you’re considering a new home purchase in the coming months, getting that new home under contract now maybe a great way to celebrate the holidays.