That “boing” is the Southern Nevada real estate market bouncing off of the bottom. I should be modest and refrain from saying I told you so, but I’m not that nice a guy. I told you so. No, things are not about to resume the level of three years ago any time soon, but prices are, and this is actually a fact now, on an uptick.
From my most recent newsletter, which I will post here along about November 1st, comes this report on market conditions in Las Vegas as of yesterday:
LAS VEGAS REAL ESTATE MARKET STATISTICS AS OF OCTOBER 20, 2010
(single family residences)
Total listings equals 21559
Listings with no offers equals 13095
October to date closings equal 1241
Converted to a monthly rate that equals 1860 per month
Absorption rate based on the above is 12195/1575 months, or 7.0 months.
By the way, if you receive my newsletter, you may notice that the date was wrong on that headline. I can write, but apparently I’m a lousy editor.
Be that as it may, In three weeks there have been more closings in October than in all of August. No joke. The house we rent out in Henderson is up 3%. Not great, I’ll admit, but it’s better than it going the other way. The worst performing neighborhood in Las Vegas at this time is, so far as I can tell (and I may have missed something) flat. Most are actually worth more now than they were at mid summer. Or, in other words, I told you so. My favorite part is that it started just when I said it would: at just about the same time after the nation started recovering as the crash hit after the nation crashed. Amazing? No, just to be expected. If you don’t listen to all the stuff that gets you upset, that is.
So, as I’ve said before, the time is excellent to buy into Las Vegas at a low price. Sure, full recovery will take a few years, but not nearly so long as you’ve heard. Those people telling you it will be twenty years before prices reach pre-crash levels are the same people who told you that Las Vegas prices would always keep going up. Were they right then? Then they’re not right now. This is Vegas, baby. Everybody wants to come here at least once. We have a modern thriving city in the midst of the worst desert in North America. You think we won’t bounce back? Hah!
Write me any time if you’d like to know more about the Las Vegas market. I’ll get back to you, I promise!