We've always said, "Opportunity has a shelf life." But just what does that mean, especially to you? Let's take the Las Vegas market for example, where the real meaning of this phrase becomes apparent. It could mean the buys of a lifetime won't exactly be here much longer as confidence returns to the market. But this is fantastic news for you, and we'll share some inside information to help you take advantage of this occasion before the expiration date arrives.
How do we know opportunity is brewing? 63% of renters say that owning a home is a priority of theirs in the near future. In fact, 40% say it’s actually one of their highest. Furthermore, 25% of them are entertaining the idea today more than they were a year ago. When we look at those who have already purchased, 51% are paying cash and 45% are borrowing money at extremely low interest rates not seen in 30 years. The dream of owning your very own home is now far more realistic than it has been for the past 40 years. According to Harvard University, last year the mortgage payment required to buy a median priced home (which is around $125,000) fell below 20% of the median household income for the first time since 1971. That means that a house payment would be less than 25% of what you earn. More people are eligible today than any time in the last 40 years.
When the market was booming between the years of 2003 and 2007, a whopping 1.3 million homes were created per year. Only 357,000 were created in 2010, but 9% of those built were in Las Vegas. Even just last month, there were 237 new home sales and 3,241 resales here. Resale activity is great; it's actually increased 4% over the last year. We'll continue to match last year's total of around 43,000 annual sales if consumer confidence continues to increase.
However, the bad news is that current housing prices will continue to bob along the bottom end so long as foreclosures continue adding to our inventory. Honestly though, we'd still question calling that "bad news" for some of us, especially when the investors who buy these get a handsome 15% return on the properties when they rent it out for $1,200 per month to those who've lost their homes. So given all of this, we have to ask...do you want to let this good fortune slip away?
The numbers speak for themselves, but even they do not speak wholly for all of the benefits you can reap. Things are just looking excellent for real estate in Las Vegas, and you have the chance to get in on this...so what are you waiting for?