Inquiring minds are reading “Experts Say Housing Recovery…” and are realizing that this downturn’s recovery is years away, especially for Las Vegas:
Las Vegas has been stricken by an unfathomable number of home foreclosures. Most of the surviving homeowners owe more on their homes than they’re worth in today’s marketplace. Young families that thought they were buying homes on the cheap two or three years ago are now finding that they, too, are underwater.
On the other hand, this is all good news for buyers looking for incredible deals.
What’s in store for us in 2011?
Indeed, what is in store for us this year…
Does that mean you think sales and prices will increase in 2011?
Bottfeld: No. What it means there is the potential for prices to increase. I think sales will remain where we are at now.
Smith: I don’t think (prices are) going to go down much lower on the resale end. On the new-home segment if we are comparing year-to-year prices — I said it earlier this year and I got criticized for it — I think we will see another small increase in the price of new-home sales.
Stark: I put no change for 2011 when I put my budget in to Prudential.
Plaster: I’m more pessimistic. People ask if this is a good time to buy a house and in retrospect probably four months ago was because what has happened with affordability in terms of interest rates — up about three-quarters of a point from the bottom. That’s going to be a strong headwind. I don’t know what percentage of sales are cash, but there’s only so much cash out there.
Stark: Forty-six percent were cash sales.
Plaster: I am one of those buyers. I buy them to flip, but we also have some we buy for investment purposes. It sounds great getting a 10 to 12 percent return, but if the value of your price has fallen 5 percent, all that return for that year has disappeared, so what you are having to bet on is when will the prices come up. I fervently believe that prices are now below our stabilized level by an order of magnitude of 20 percent. But I have to say if I have to choose if we were to meet at this time next year, my sense is the price level has a greater chance of being lower than higher in Las Vegas.
That last reply by Mr. Plaster is so very important to understand. This, the inherent dynamic pricing risk, is an additional force in driving down prices.
The rest of the article is a very informational. Please follow the link and see what they have to say.
Filed under: Uncategorized |