Las Vegas Valley: A Buyer’s Market
Sellers beware: the wheel’s are finally turning and it seems that the buying public is on top. They are regaining power and want the world on their fingertips. If you own a home in what they are trying to claim as their world, feeling nauseatingly crazy about your lost rendition of Og Mandino’s “Greatest Salesman of the World,” the sky is not falling in. The Las Vegas housing market is changing, but the future does not point to a certain dominance by buyers.
Gone are days of overpriced per-square-feet residential lands and for-rich-people-only condominium units. Gone too are the long lists of reservations, advanced payments and campouts as desperate buyers compete with each other for corner houses in big subdivisions. Gone are the golden years of million dollars earning sales agents.
Instead, a number of home-sale indicators show how the Las Vegas Valley is now experiencing a real estate bargain zone.
Resale houses, contrary to the common practice, are no longer sold above the listing price.
Many sellers are accepting lowball offers because if not, a resale house which can normally be sold in just 2 weeks, will now taking up to 3 or 4 months before getting sold.
Previously, we were bombarded with additional service charges, but things have changed now. Many residential buildings are now offering free services like parking, lawn maintenance, laundry and moving-in help. Some even give away incentive packages in huge amounts.
Developers offer doubled incentive to sales agents. The usual 3% now reaches up to 6% plus they also give away bonus items such as cars.
Because of increased incidence of contract cancellation, Home Developers are now cutting staff and unit prices of houses.
But Real Estate companies and agents want to make it clear that the demand for new houses has NOT diminished, considering the high percentage of population and job growth. What causes the decline in sales is that the supply for houses exceeds the demand for it.
In a way, this new trend has been a blessing in disguise for the buying public because it enables them to call the shots. Buyers can now go after the pick of the litter and negotiate for better prices.
While this comes as good news to buyers, it arrives as a whiplash to home builders. Why? Because they are forced to lower their prices, reduce number of employees, and reduce the cost of materials and services. When this happens, the qualities of their products are undoubtedly compromised. It may also be possible that some areas of the valley will suffer a decrease in sales despite the low prices. It’s a basic in the law of supply and demand Economics.
Gone are days of overpriced per-square-feet residential lands and for-rich-people-only condominium units. Gone too are the long lists of reservations, advanced payments and campouts as desperate buyers compete with each other for corner houses in big subdivisions. Gone are the golden years of million dollars earning sales agents.
Instead, a number of home-sale indicators show how the Las Vegas Valley is now experiencing a real estate bargain zone.
Resale houses, contrary to the common practice, are no longer sold above the listing price.
Many sellers are accepting lowball offers because if not, a resale house which can normally be sold in just 2 weeks, will now taking up to 3 or 4 months before getting sold.
Previously, we were bombarded with additional service charges, but things have changed now. Many residential buildings are now offering free services like parking, lawn maintenance, laundry and moving-in help. Some even give away incentive packages in huge amounts.
Developers offer doubled incentive to sales agents. The usual 3% now reaches up to 6% plus they also give away bonus items such as cars.
Because of increased incidence of contract cancellation, Home Developers are now cutting staff and unit prices of houses.
But Real Estate companies and agents want to make it clear that the demand for new houses has NOT diminished, considering the high percentage of population and job growth. What causes the decline in sales is that the supply for houses exceeds the demand for it.
In a way, this new trend has been a blessing in disguise for the buying public because it enables them to call the shots. Buyers can now go after the pick of the litter and negotiate for better prices.
While this comes as good news to buyers, it arrives as a whiplash to home builders. Why? Because they are forced to lower their prices, reduce number of employees, and reduce the cost of materials and services. When this happens, the qualities of their products are undoubtedly compromised. It may also be possible that some areas of the valley will suffer a decrease in sales despite the low prices. It’s a basic in the law of supply and demand Economics.
posted by realestatevegas | 6:08 AM
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