Las Vegas Real Estate Values continue to Decline
To be honest with you, I thought prices for Las Vegas real estate were overvalued in 2005 and I can send you several referrals of clients that I told this to. Particularly several true investment clients that we had sold their homes when prices for Las Vegas real estate were beyond reason. It honestly did not make sense and it was obvious Las Vegas real estate values were being fueled by cheap and easy money by so called real estate investors who had no clue what true real estate investing is all about.
Price corrections were well needed but we now have to wonder if we’ve gone through one extreme to another. To the right is a snapshot from the Greater Las Vegas Association of REALTORS MLS for prices for Spanish Trail Real Estate. Spanish Trail Homes are completely unique and one of a kind and are not your normal everyday Las Vegas real estate and as you can see, even Spanish Trail has not been immune to real estate values declining. These are recent price drops and trust me, these prices have not been seen in Spanish Trail since 2004.
One particular Summerlin Home that caught my attention today that showed up under my radar watch was a home in South Summerlin that was the same floorplan that was just listed for a price below 2003 prices. Like Spanish Trail, it is a community we specialize in so when the automatic alert showed up to notify us that this single story Summerlin home with a little over 1900 square feet popped up for $279,000 we were a little shocked to say the least. We were selling the same floorplan in 2003 for over $300,000 and when prices went insane, the same homes were selling in the high $300′s in 2005.
The tough real estate market is sorting the REALTORS out that really were never meant to be in the business to begin with. Real Estate does not always go up in value and it’s not always a great investment and knowing this is the difference between somebody who is just looking to sell you something for a commission and somebody who can give you great consulting advice.
Our investors that were selling off their Las Vegas real estate in 2004 and 2005 are back and we just wrote up three contracts in three days for some phenomenal deals where the rent values pay the mortgage. This particular client is a true real estate investor that has not bought anything since 2003 and has a background in the Mortgage business and development and they see the great opportunities available.
Will Las Vegas Real Estate values continue to decline? I can’t tell you with 100% certainty because it depends on the mentality of buyers but I can find you several Las Vegas properties in great areas where a renter will pay your mortgage for the next 30 years. In my opinion, that’s what real estate investing is all about.
Paul Francis, ABR,CRS | Coldwell Banker | Las Vegas Real Estate | 702.592.3058
