Newbie from CA looking in Las Vegas

[Marysol F.]

Brand new to BP and looking actively in Las Vegas for our first investment income property, buy and hold is my strategy. When we came just two months ago, bidding wars were still a thing. Now realtors are telling us that has stopped and seller credits and longer days on market are now more common. Still seems the properties are pricey, realtor said many folks are realizing they missed the boat and are purposely overpricing their lisitings. I am curious if anyone is active in this market and seeing opportunities, there seems to be an opportunity to take advantage of price dislocation but I don't feel savvy enough yet to identify those opportunities. Thanks and much love for any all thoughts!

[Account Closed]

@Marysol F.

Here are some stats to help you understand our market:

The median price as of today is down an additional 4% from July...4% in 2 weeks. If the trend continues through August, the median price will be down 7.1% in just two months.

Only 3 months ago, the average closing price of a single family home was over 101% of list price. Today, it's down to 97.1%. 

I included some charts below.

iBuyers like Open Door and Zillow, institutional investors, pandemic migration, low interest rates and government policy (eviction moratoriums early on in the pandemic) helped create the unusual sales and rental market Las Vegas just experienced. Our market is slowing as post pandemic reality hits the breaks on all things housing. I believe we are all hoping for a correction rather than a crash...only time will tell. There is constant chatter about the shortage of water and I know some people who've left Vegas for this fear alone. I'm still personally invested with rental homes in Las Vegas and Henderson but I have also diversified over the past few years. 

The interesting part is I'm seeing a shift the last 30 days in rentals too. We are experiencing too much overpriced rental supply and not enough demand. A 4 bedroom house in West Summerlin 89138 3-6 months ago would have easily rented for $2,500 in 7-10 days. Now there is too much competition, rental houses are sitting on the market longer and there are price decreases in rentals too. This goes against what everyone thought would happen. I attribute it to people moving out of state post pandemic (first-hand experience w/ move-out notices the last 30-60 days) and Owners getting greedy because the media is talking about rent increases. 

The thing is rent increases already happened between Fall 2020 and Spring 2022. Rents have stabilized and/or started to feel downward pressure due to increased supply and decreased demand.

Cheers!

-Heidi

Number Of Active Single Family Listings