Related Las Vegas Stories so far this month:

Las Vegas Unemployment continues to rise to 13.4% – still climbing even though we see signs of life in businesses that offer a great service at a great price.

Strip Gaming Revenue Continues to Fall – Latest Gaming Revenues report continues trend of monthly declines.

Real Estate Investors Swoop Into Housing

Read between the lines for this story –> Investors Paying Cash beat out Public Servants.  AKA Owner Occupants.

Pay Attention Here…

Many times they won’t negotiate any out of pocket costs. “The banks really don’t have to because there are so many people trying to buy that the competition makes it impossible to get the banks to agree to pay for their closing costs,” he said.

So… we have a lot of competition to buy homes in Las Vegas as Unemployment is going up. With more Las Vegas Foreclosures on the way, this is hardly a normal market condition.

Unless of course.. there is some sort of an incentive.

He believes more foreclosed homes will be on the market soon. But McCasland says her patience is running thin. She’s worried she’ll miss the deadline for the government’s $8,000 tax credit. All she wants is a chance. “I have two little kids who don’t have a backyard to play in. I would love to buy a house and have that American dream,” she said.

Blanchard says in order for the housing market to fully bounce back, the tax credit deadline needs to be extended or there needs to be another buyer assistance program to help get families into homes.

In one quote we have a statement of how much competition there is to buy and then we have a statement that the tax credit deadline needs to be extended for the housing market to fully bounce back.

In other words… the looming tax credit deadline may be creating a temporary high demand for the current inventory as the delayed inventory of foreclosures due to the foreclosure moratoriums are on the way. We know there are more foreclosures coming and you have to wonder what will happen if the tax credit expires as the new inventory hits the market for sale.

If you don’t qualify for the $8,000 tax credit in the first place… should you wait and see what happens?

Impatient buyers trying to beat the deadline are bidding more for homes then the list price… creating the increased competition. If the $8,000 tax credit is not extended, will this lessen the competition and will the very attractive prices continue to attract buyers? The $8,000 tax credit has been around for quite some time so real estate buyers have had plenty of time to take advantage of it. If extended, the urgency to buy is gone until the next time it is set to expire. Subsidies are always eventually a double edged sword with consequences.

The debate is on as the National Association of Realtors® campaigns for the extension.

Should the $8,000 Tax Credit be Extended?

Critics, however, see the credit as a subsidy for people who don’t need one.

Charles Curtis and his wife weren’t even aware of the tax credit until they put a $895,000 all-cash offer in July on a two-bedroom apartment in New York City.

Las Vegas Rentals Available:

As of today, there are 5,251 Rental Properties available for lease on the Las Vegas MLS in the 101-606 areas that includes Las Vegas, Henderson, North Las Vegas and Summerlin.

Certainly some very interesting forces in play when all factors are considered.

Paul Francis, CRS
Prudential Americana Group – Realtors®
Las Vegas Real Estate
702.592.3058