2013 blew by so quickly! I remember starting the year in January and feeling this huge shift in the Real Estate market growing into what I like call the “The Mini Real Estate Boom.”
The Mini Boom is over. It is clear to me that the investors and cash buyers that fueled the mini boom of 2013 have backed away from our market. The housing inventory has more than doubled since the first quarter lows of 2013.
This increased Inventory is not from the banks REO’s or Short Sales, but from the pent up demand from the sellers that have been trapped in their properties during the huge downturn. The mini bubble was the perfect timing for many sellers to take advantage of this huge appreciation increase that was created by low inventory levels of 2012. The slow-down began about 60-90 days ago and has slowed more now as we are in the holiday season. I expect that we will see an increase in the inventory by Mid January, as again many sellers are waiting to enter the market and chose to hold off during the holidays.
Now the million dollar question is “What can we expect for the Las Vegas Real Estate market in 2014?” Just writing the year down “2014” gets me excited, as I do feel that this will be the year that the Real Estate market will shift from a severely distressed market to a more predictable one, and resemble as close to a regular real estate market as we have seen since prior to 2002.
There are several factors that tell me we will see a more stable market. The banks do not want to be in the foreclosure business any longer and they will do work-outs with underwater sellers based on the most basic hardship scenarios. The short sales have softened substantially in 2013; they will not disappear entirely as many homeowners are still underwater or behind on their mortgage in the Las Vegas Valley, but short sales will gradually decrease over the next few years. The balanced inventory of homes available for buyers will get the housing market going for the first time home buyers to take advantage of motivated sellers and with less competition from the cash buyers of 2012-13. I also expect that many homeowners that are renting now due to a short sale will get back into the Real Estate Market in 2014 and buy again as they now have more banks offering mortgage programs that will help those previous short sellers get qualified to purchase in the New Year.
The Dulcie Crawford Group has remained busy and selling more homes each year despite the downturn and 2013 was no exception. We’ve stayed busy all the way to the end of the year! I am so proud of my group of professionals; they have helped me achieve over 100 closings this year. I want to thank all our clients, associates and friends that helped make this happen.
Happy Holidays to you and your families!! 2014 here we come.