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Buying & Selling Real Estate

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Jim G.
  • Investor
  • Bay Area, CA
34
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81
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Las Vegas Market and investor minded Agent

Jim G.
  • Investor
  • Bay Area, CA
Posted Oct 31 2022, 11:46

Like to know recent Las Vegas Market. Also want to find an agent who has his/her own SFH invest in Las Vegas.

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Andrew Weiler
  • Real Estate Agent
  • Las Vegas/Henderson
14
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28
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Andrew Weiler
  • Real Estate Agent
  • Las Vegas/Henderson
Replied Oct 31 2022, 14:49

Jim, 

There is tons to understand about investing in the Las Vegas market, always open to chat and help anyway I can. I'm an investor agent here in town and my uncle and I have a few SFH as well as MFH here in town and they have done really well.

Love to chat more. Send me a message! 

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Stephen DeThample
  • Real Estate Agent
  • Las Vegas, NV
262
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385
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Stephen DeThample
  • Real Estate Agent
  • Las Vegas, NV
Replied Oct 31 2022, 23:17

Hi @Jim G.

The Las Vegas market Median Sale Price for SFR has come down from a high of $481k in May $450k in August and September.

The Number of Active SFR Listings went from a low of 3,892 in February to 10,703 in September.

he days on market (DOM) have increased as follows: 

May 2022 7 DOM with a $499,900 Listed Price Median
Jun 2022 8 DOM with a $489,000 Listed Price Median
Jul 2022 12 DOM with a $469,958 Listed Price Median
Aug 2022 18 DOM with a $470,000 Listed Price Median
Sep 2022 26 DOM with a $465,000 Listed Price Median

The 7% interest rates are cooling the market and giving the advantage to investors that can afford to pay cash or have the income to get a loan at these rates. There are deals out there and will continue to be. As always, I suggest all investors run the BiggerPockets Calculators to see if the numbers work and also keep options open to try new strategies (house hack, rent by the room, STR, Mid-term rental, etc...)

Leave a reply if you have any questions or thoughts.

Best Wishes and Happy Investing! 

Stephen DeThample LLC Logo
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Jim G.
  • Investor
  • Bay Area, CA
34
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81
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Jim G.
  • Investor
  • Bay Area, CA
Replied Nov 1 2022, 10:42

Thanks @Stephen DeThample and @Andrew Weiler for the info. Any idea of the neighborhood of SFH? I am interested iin relative new SFH (within 5 or 10 years old). Not plan to purchase immediately as i feel it may have room to drop. But I need to identify the neighborhoods now so when the time is ready, I could jump in right away. Any neighborhoods would you guys recommend? What type of potential tenants of the neighborhood would be? I heard Summerlin, Henderson are good places. But I am sure they have pros and cons.

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Andrew Weiler
  • Real Estate Agent
  • Las Vegas/Henderson
14
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28
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Andrew Weiler
  • Real Estate Agent
  • Las Vegas/Henderson
Replied Nov 1 2022, 11:02

Henderson & summerlin are both wonderful options for SFH being that both are very popular sides of town for people from california to move too. Both are really great areas, great shopping, schools, and other amenities. Summerlin is a bit further from all the action than henderson is but there is plenty to love about summerlin for sure. Tons of families move to these areas to give their kids a better life especially coming from california, I speak to this only because I myself am originally from california and I find that those two areas of the valley are the closest thing to california feel. Let me know if you have anymore questions!

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Phillip Dwyer
  • Real Estate Agent
  • Henderson, NV
525
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1,953
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Phillip Dwyer
  • Real Estate Agent
  • Henderson, NV
Replied Nov 4 2022, 10:14

@Jim G. I've been helping investors acquire property and then manage those units for over a decade in the Vegas metro. I've lived and worked in both Summerlin and Henderson. I've had great experiences in both. There are others areas that can work too. There's a ton of new construction happening throughout the valley with concentrations in the northwest, southwest, and south central parts of town. As others have stated, the market has been cooling. We're seeing some typical seasonal drop off of new listings hitting the market, but inventory has grown with a slow down in demand directly correlated with interest rate hikes. There seemed to be a little slow down in the rental market a couple months back, but everything I've been listing for rent lately has moved quite quickly. That said, I mostly play in the SFR market with some condos and townhomes mixed in.

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Eric Fernwood
  • Realtor
  • Las Vegas, NV
1,372
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635
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Eric Fernwood
  • Realtor
  • Las Vegas, NV
Replied Nov 11 2022, 12:56

Hello @Jim G.

Below is from my monthly market update (on Las Vegas) for my newsletter readers. Some background.

Investment real estate is all we do. So far, we’ve delivered over 470 properties.

Our client's goal is passive income streams that rise faster than inflation and are reliable through market ups and downs. Their goal defined our target tenant pool segment, which defined the properties we selected.

Las Vegas, like every other market, is transitioning back from COVID. This, plus high-interest rates, financial market turbulence, and normal seasonal trends, reduced sales volume. However, the current slowdown presents good opportunities. I will talk about this later.

Market Update

The data below is only for single-family properties that meet all our requirements; the information includes no other property types.

Sales - $/SF by Month

High-interest rates and such cooled the market starting mid-year.

https://www.lasvegasrealestateinvestmentgroup.com/nwassets/images/13MonthAnalytics/SalesMedianPPSFByMonth-Statistics.svg?1


Sales - Median List to Contract Days

The days on market decreased in October.

https://www.lasvegasrealestateinvestmentgroup.com/nwassets/images/13MonthAnalytics/SalesListToContractDays-Statistics.svg?1


Sales - Months of Supply

Supply is a little over three months, still a seller’s market. Six months of supply is considered a balanced market.

https://www.lasvegasrealestateinvestmentgroup.com/nwassets/images/13MonthAnalytics/SalesMonthsOfSupply-Statistics.svg?1


Rentals - Median $/SF

YoY rents are up 5%. With high-interest rates, more people are forced to rent.

https://www.lasvegasrealestateinvestmentgroup.com/nwassets/images/13MonthAnalytics/RentalsMedianPPSFByMonth-Statistics.svg?1


Rentals - Median List to Contract Days

Days on market are still below pre-COVID.

https://www.lasvegasrealestateinvestmentgroup.com/nwassets/images/13MonthAnalytics/RentalsListToContractDaysByMonth-Statistics.svg?1


Rentals - Months of Supply

Just a little over one month of supply, indicating demand is still greater than supply, which will push up the rents.

https://www.lasvegasrealestateinvestmentgroup.com/nwassets/images/13MonthAnalytics/rentalsMonthsOfSupply-Statistics.svg?1


Where do I see the market going from here?

Below is a chart from the MLS showing the number of new listings by month for all single family homes. It's been dropping rapidly since June.



Inventory is leveling off at around 3.5 months, as I expected.

I see no reason why more sellers would be compelled to sell their homes in the coming months, especially when their current mortgage interest rates are in the 3’s or 4’s. Also, only a small percentage (<1%) of homes in Las Vegas are underwater, so there will be few distressed sales. This is why I believe inventory will stabilize at 2-3 months of supply. This was the state before COVID. Before COVID (2018 and 2019), prices and rents increased by about +5% per year; supply ranged between 2 and 3 months.

Why do I believe prices will continue to increase?

The market drivers for Las Vegas haven’t changed.

  • Population growth - Population increases by 2.5% to 3% per year.
  • Land shortage - At the end of 2019, there were about 26,000 undeveloped acres. About 5,000 or 6,000 is not suitable for residential construction. Las Vegas consumes about 5,000 acres per year in new development.
https://www.lasvegasrealestateinvestmentgroup.com/nwassets/images/LasVegasAerialMap2020-20221003.jpg
  • Jobs - Jobs bring people. Today, there are between 26,000 and 31,000 available jobs in Las Vegas, depending on which job board you check. And over $22B is under development. These developments will create thousands more jobs.

The combination of increasing population and decreasing land supply almost guarantees future rent and price increases.

Opportunity

As we search properties for clients, we are seeing more good opportunities. Some sellers are willing to contribute thousands to buyers’ closing costs. These funds could buy down the interest rate or reduce your closing costs. I can certainly resonate with Warren Buffett’s famous quote, “(be) greedy when others are fearful”, as long as you pick the right properties.

Jim, hope this helps. Let me know if you have any questions.

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Jim G.
  • Investor
  • Bay Area, CA
34
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81
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Jim G.
  • Investor
  • Bay Area, CA
Replied Nov 14 2022, 20:16

Thanks @Eric Fernwood for the update!