Las Vegas Housing Market Trends and Forecast
In today's scenario, the Las Vegas housing market leans towards sellers due to heightened demand and restricted inventory. With homes selling swiftly and sellers benefiting from favorable conditions, it's clearly a seller's market. Nonetheless, buyers can seize opportunities by acting promptly, utilizing pre-approval for financing, and teaming up with experienced real estate experts to navigate the market adeptly.
Current Market Snapshot
In February 2024, the Las Vegas real estate market witnessed a surge in activity, with 1,896 single-family homes changing hands—a 28.2% increase from January and a 10.1% rise from the same period last year. The median sales price for single-family homes rose from $445,000 to $460,000, reflecting robust demand.
Competitiveness and Inventory Challenges
Despite an increase in new listings, the number of listed single-family houses without offers decreased by 2.3% from the previous month and 35.6% from the previous year. The market remains fiercely competitive, with buyers facing stiff competition due to limited inventory.
Meeting Buyer Demand with Limited Inventory
With only 1.8 months of inventory on the market in February—a 23.8% decrease from January and 32.4% from the previous year—buyers must act swiftly. 41.1% of closings occurred within 30 days of listing, highlighting the urgency for buyers to make prompt decisions.
Future Market Prospects
Despite challenges such as rising interest rates, the housing market shows resilience. Mortgage rates have stabilized, and the Fed's potential rate cuts, combined with increased seller activity, bode well for the future.
At Cunningham Real Estate Group, we specialize in helping clients navigate the Las Vegas housing market with confidence. Contact us today to learn more about how we can assist you in this vibrant market.
The Top 5 Reasons You Need a Real Estate Agent when Buying a Home
You may have heard headlines in the news lately about agents in the real estate industry and discussions about their commissions. And if you’re following along, it can be pretty confusing. But here’s the thing you really need to know – expert advice from a trusted real estate agent is priceless, now more than ever. And here’s why.
A real estate agent does a lot more than you may realize.
Your agent is the person who will guide you through every step when buying a home and look out for your best interests along the way. They smooth out a complex process and take away the bulk of the stress of what’s likely your largest purchase ever. And that’s exactly what you want and deserve.
This is at least a part of the reason why a recent survey from Bright MLS found an overwhelming majority of people agree an agent is a key part of the homebuying process (see visual below):
To give you a better idea of just a few of the top ways agents add value, check out this list.
1. Deliver Industry Experience
The right agent – the professional – will coach you through everything from start to finish. With professional training and expertise, agents know the ins and outs of the buying process. And in today’s complex market, the way real estate transactions are executed is constantly changing, so having the best advice on your side is essential.
2. Provide Expert Local Knowledge
In a world that’s powered by data, a great agent can clarify what it all means, separate fact from fiction, and help you understand how current market trends apply to your unique search. From how quickly homes are selling to the latest listings you don’t want to miss, they can explain what’s happening in your specific local market so you can make a confident decision.
3. Explain Pricing and Market Value
Agents help you understand the latest pricing trends in your area. What’s a home valued at in your market? What should you think about when you’re making an offer? Is this a house that might have issues you can’t see on the surface? No one wants to overpay, so having an expert who really gets true market value for individual neighborhoods is priceless. An offer that’s both fair and competitive in today’s housing market is essential, and a local expert knows how to help you hit the mark.
4. Review Contracts and Fine Print
In a fast-moving and heavily regulated process, agents help you make sense of the necessary disclosures and documents, so you know what you’re signing. Having a professional that’s trained to explain the details could make or break your transaction, and is certainly something you don’t want to try to figure out on your own.
5. Bring Negotiation Expertise
From offer to counteroffer and inspection to closing, there are a lot of stakeholders involved in a real estate transaction. Having someone on your side who knows you and the process makes a world of difference. An agent will advocate for you as they work with each party. It’s a big deal, and you need a partner at every turn to land the best possible outcome.
Real estate agents are specialists, educators, and negotiators. They adjust to market changes and keep you informed. And keep in mind, every time you make a big decision in your life, especially a financial one, you need an expert on your side.
Expert advice from a trusted professional is priceless. Connect with a us today!
Your Home Is a Powerful Investment
Going into 2023, there was a lot of talk about a possible recession that would cause the housing market to crash. Some in the media were even forecasting home prices would drop by as much as 10-20%—and that might have made you feel a bit unsure about buying a home.
But here’s what actually happened: home prices went up more than usual. Brian D. Luke, Head of Commodities at S&P Dow Jones Indices, explains:
“Looking back at the year, 2023 appears to have exceeded average annual home price gains over the past 35 years.”
To put last year’s growth into context, the graph below uses data from Freddie Mac on how home prices have changed each year going back to 1980. The dotted line shows the long-term average for appreciation:
The big takeaway? Home prices almost always go up.
As an article from Forbes says:
“. . . the U.S. real estate market has a long and reliable history of increasing in value over time.”
In fact, since 1980, the only time home prices dropped was during the housing market crash (shown in red in the graph above). Fortunately, the market today isn’t like it was in 2008. For starters, there aren’t enough available homes to meet buyer demand right now. On top of that, homeowners have a tremendous amount of equity, so they’re on much stronger footing than they were back then. That means there won’t be a wave of foreclosures that causes prices to fall.
The fact that home values went up every single year except those four in red is why owning a home can be one of the smartest moves you can make. When you’re a homeowner, you own something that typically becomes more valuable over time. And as your home’s value appreciates, your net worth grows.
So, if you’re financially stable and prepared for the costs and expenses of homeownership, buying a home might make a lot of sense for you.
Home prices almost always go up over time, making buying a home a smart move if you’re ready and able. Connect with us to discuss your goals and explore what's available in the area.
Why Today’s Seller’s Market Is Good for Your Bottom Line
Thinking about selling your house and wondering if now’s a good time to do it? Here’s what you need to know. Even though the number of homes for sale has been growing this year, there still aren’t enough homes on the market for all the buyers who want to buy.
So, what does that mean for you? To keep it simple, it means it’s still a seller’s market. Here’s how it works:
A neutral market is when supply and demand is balanced. Basically, there are enough homes to meet buyer demand based on the current sales pace, and home prices hold fairly steady.
A buyer’s market is when there are more homes for sale than there are buyers. When that happens, buyers have more negotiation power because sellers are willing to make compromises to close the deal. In a buyer’s market, sellers may have to do price cuts to re-ignite interest in their home, and prices may go down. But we haven’t seen this for years since there are so few homes available to buy.
In a seller’s market, it’s just the opposite. When the supply of homes for sale is as low as it is right now, it’s much harder for buyers to find homes to purchase. That creates increased competition among purchasers which can lead to more bidding wars. And if buyers know they may be entering a bidding war, they’re going to do their best to submit a very attractive offer upfront. This could drive the final sale price of your house up.
The graph below uses data from the National Association of Realtors to show just how deep into seller’s market territory we still are today:
What Does This Mean for You?
The market is still working in your favor. If you lean on an agent for advice on how to get your house list ready and how to price it competitively, it should get a lot of attention from eager buyers. That means you’ll likely get multiple offers and see your house sell quickly and for top dollar. As a recent article from Ramsey Solutions explains:
“A seller’s market is when demand for homes is higher than the supply of homes. And that’s still the case right now. If you’re planning to sell your house, you can expect to sell it fairly quickly for close to your asking price—as long as your asking price is realistic for the current market.”
Today's housing market still favors sellers. If you're ready to sell your house, connect with us so you can start making your moves.
The Changing Landscape of Real Estate
By Shawn Cunningham
The real estate industry is on the brink of significant change, especially in how agents are compensated. Recent discussions have highlighted the need for a shift in compensation structures, predicting that many current real estate agents may soon find themselves out of the profession.
A Closer Look at Compensation
Traditionally, all agents, regardless of their experience or the value they provide, have been compensated similarly. This approach doesn't make much sense. Why should a newcomer receive the same pay as a seasoned expert who brings years of market knowledge, negotiation skills, and comprehensive services to the table? This disparity in compensation, where some earn much for minimal effort while others work tirelessly for their clients, is set to change.
Choosing Value Over Cost
Consider the analogy of choosing a hotel. Some of us opt for budget-friendly hotels, while others splurge on luxury stays like the Four Seasons, expecting a higher level of care and comfort. Similarly, in real estate, consumers have the freedom to decide the level of service they desire based on their specific needs, preferences, and what they value most—be it time, comfort, or cost savings.
At our company, we've always aimed to match our expertise with clients' needs, ensuring they receive unparalleled service and value. With upcoming rule changes in July, we're proactively adjusting to continue delivering exceptional value to our clients.
Impact on Buyers
The new model requires buyers to directly hire and compensate their agents. Our experience, particularly with investors, has shown us the importance of providing detailed guidance through the buying process. From property evaluation to negotiating with sellers, we offer comprehensive support that truly adds value. Unfortunately, under the new system, many agents who fail to provide tangible benefits will likely exit the industry.
For buyers, especially first-timers or those in competitive markets, this could mean facing additional challenges without professional assistance. However, discerning buyers who recognize the value of expert guidance will still find and compensate for quality representation.
Seller Dynamics
For sellers, the primary change involves more strategic conversations about positioning their property in the market and potentially offering incentives to attract buyers. High-end properties might see little to no change, as buyers willing to invest in quality representation will do so based on the perceived value of the service.
In Conclusion
The evolving world of real estate is moving towards a more value-oriented approach, where the compensation of agents reflects the actual benefits they provide to their clients. This shift promises to enhance the quality of service and ensure that both buyers and sellers make informed decisions based on their unique needs and values.
Las Vegas: The New American Dream Destination for Homebuyers
In an era marked by significant shifts in living preferences and work modalities, Americans are increasingly seeking new horizons that promise both affordability and quality of life. A recent study by Redfin, a leading real estate company, has shed light on this trend, revealing that a record 25.5% of its users are exploring moves to different metro areas, with Las Vegas emerging as the most popular destination. This finding underscores a broader narrative of migration within the United States, where individuals and families are prioritizing cost of living, climate, and lifestyle in their relocation decisions.
The Allure of Las Vegas
Historically known for its vibrant entertainment scene and bustling nightlife, Las Vegas is now being recognized for much more than just its casinos and shows. The city's ascent to the top of Redfin's list marks a significant milestone, reflecting its evolving appeal beyond the neon lights. Affordable housing stands out as a compelling factor, with the average home in Las Vegas costing significantly less than in traditional urban strongholds like San Francisco, New York, and Los Angeles. This affordability, coupled with Nevada's favorable tax laws, makes Las Vegas an attractive option for those looking to stretch their dollars further without compromising on lifestyle.
Beyond Affordability: What Draws People to Las Vegas?
While affordability is a key driver, the allure of Las Vegas extends to its warm climate and the promise of a more relaxed lifestyle. Unlike the congested streets and high-pressure environments of larger cities, Las Vegas offers a blend of suburban comfort with the perks of urban living. The city boasts a growing job market, diverse culinary scene, and ample outdoor activities, making it an ideal place for both young professionals and families.
Moreover, the shift towards remote work has played a crucial role in this migration trend. With more people having the flexibility to work from anywhere, the decision to move is increasingly influenced by quality of life considerations. Las Vegas, with its mix of affordability, entertainment, and leisure activities, presents a compelling case for those seeking to balance work and play.
The Broader Trend of Sunbelt Migration
Las Vegas's popularity is part of a larger pattern of migration towards Sunbelt cities, characterized by warmer climates and lower costs of living. Phoenix and Tampa also ranked high on Redfin's list, echoing the demand for destinations that offer economic opportunities without the hefty price tag of coastal metropolises. This trend signifies a shift in the American dream, with homebuyers prioritizing financial pragmatism and lifestyle quality over traditional status symbols.
Positive Impact on Urban Development and Housing Markets
The growing interest in cities like Las Vegas is generating exciting opportunities for urban development and the housing market across the country. As more people choose these areas over more expensive coastal cities, there is the potential for increased investment in infrastructure, services, and community amenities in these growing communities. This investment will not only improve the quality of life for current residents but also create a more attractive environment for future residents and businesses.
In Conclusion, Las Vegas's emergence as the most popular city for relocation is a testament to changing American priorities. In the pursuit of affordable living, quality of life, and work flexibility, homebuyers are turning to cities that once flew under the radar. As we look to the future, it will be fascinating to see how this trend evolves and shapes the landscape of American cities. Las Vegas, once synonymous with leisure and entertainment, is now paving the way as a beacon of the new American dream.
Expert Home Price Forecasts for 2024 Revised Up
Over the past few months, experts have revised their 2024 home price forecasts based on the latest data and market signals, and they’re even more confident prices will rise, not fall.
So, let’s see exactly how experts’ thinking has shifted – and what’s caused the change.
2024 Home Price Forecasts: Then and Now
The chart below shows what seven expert organizations think will happen to home prices in 2024. It compares their first 2024 home price forecasts (made at the end of 2023) with their newest projections:
The middle column shows that, at first, these experts thought home prices would only go up a little this year. But if you look at the column on the right, you’ll see they’ve all updated their forecasts and now think prices will go up more than they originally thought. And some of the differences are major.
There are two big factors keeping such strong upward pressure on home prices. The first is how few homes are for sale right now. According to Business Insider:
“Low home inventory is a chronic problem in the US. This has generally kept home prices up . . .”
A lack of housing inventory has been pushing prices up for a long time now – and that’s not expected to change dramatically this year. But what has changed a bit is mortgage rates.
Late last year when most housing market experts were calling for home prices to rise only a little bit in 2024, mortgage rates were up and buyer demand was more moderate.
Now that rates have come down from their peak last October, and with further declines expected over the course of the year, buyer demand has picked up. That increase in demand, along with an ongoing lack of inventory, is what’s caused the experts to feel the upward pressure on prices will be stronger than they expected a couple months ago.
A Look Forward To Get Ahead of the Next Forecast Revisions
Real estate experts regularly revise their home price forecasts as the housing market shifts. It’s a normal part of their job that ensures their projections are always up-to-date and factor in the latest changes in the housing market.
That means they’ll continue to revise their projections as the housing market changes, just as they’ve always done. How those forecasts change next is anyone’s guess, but pay attention to mortgage rates.
If they trend down as the year goes on, as they’re expected to do, that could lead to more buyer demand and even higher home price forecasts.
Basically, it’s all about supply and demand. With supply still so limited, anything that causes demand to go up will likely cause prices to go up, too.
At first, experts believed home prices would only go up a little this year. But now, they've changed their minds and forecast prices will grow even more than they originally thought. Connect with a local real estate agent so you know what to expect with prices in your area.
What’s Really Happening with Mortgage Rates?
Are you feeling a bit unsure about what’s really happening with mortgage rates? That might be because you’ve heard someone say they’re coming down. But then you read somewhere else that they’re up again. And that may leave you scratching your head and wondering what’s true.
The simplest answer is: that what you read or hear will vary based on the time frame they’re looking at. Here’s some information that can help clear up the confusion.
Mortgage Rates Are Volatile by Nature
Mortgage rates don’t move in a straight line. There are too many factors at play for that to happen. Instead, rates bounce around because they’re impacted by things like economic conditions, decisions from the Federal Reserve, and so much more. That means they might be up one day and down the next depending on what’s going on in the economy and the world as a whole.
Take a look at the graph below. It uses data from Mortgage News Daily to show the ebbs and flows in the 30-year fixed mortgage rate since last October:
If you look at the graph, you’ll see a lot of peaks and valleys – some bigger than others. And when you use data like this to explain what’s happening, the story can be different based on which two points in the graph you’re comparing.
For example, if you’re only looking at the beginning of this month through now, you may think mortgage rates are on the way back up. But, if you look at the latest data point and compare it to the peak in October, rates have trended down. So, what’s the right way to look at it?
The Big Picture
Mortgage rates are always going to bounce around. It’s just how they work. So, you shouldn’t focus too much on the small, daily changes. Instead, to really understand the overall trend, zoom out and look at the big picture.
When you look at the highest point (October) compared to where rates are now, you can see they’ve come down compared to last year. And if you’re looking to buy a home, this is big news. Don’t let the little blips distract you. The experts agree, overall, that the larger downward trend could continue this year.
Don’t let home price headlines confuse you. The data shows that, as a whole, home prices rose in 2023. If you have questions about what you’re hearing in the news or about what’s happening with home prices in your local area, connect with a trusted real estate professional.
Tech Tools for Triumph: Mastering Short-Term Rental Success on Online Platforms
In the fast-paced world of short-term rentals, leveraging technology is key to standing out and maximizing your property’s potential on online platforms like Airbnb and VRBO. Let’s explore the essential tech tools that can elevate your short-term rental game to new heights:
*Dynamic Listing Management:
Use dynamic pricing tools to optimize your rates based on factors like demand, seasonality, and local events. Platforms like Beyond Pricing and Wheelhouse automate this process, ensuring your rates stay competitive and attractive to potential guests.
*Smart Synchronization:
Employ channel management tools such as MyAllocator or Channel Manager to synchronize your property listings across multiple platforms. This avoids overbooking, streamlines communication, and saves valuable time on manual updates.
*Strategic Property Presentation:
Invest in visual tools like Matterport or VirtualTourCafe to create immersive 3D virtual tours of your property. Enhance your listing with high-quality photos and videos to captivate potential guests and increase booking conversions.
*Automated Guest Communication:
Utilize automated messaging systems like Smartbnb or Hostfully to streamline guest communication. Pre-set messages for check-in instructions, house rules, and local recommendations, ensuring a seamless and personalized guest experience.
*Secure Payment Processing:
Opt for secure payment gateways such as Stripe or Square to facilitate smooth and secure transactions. These tools offer added convenience for guests while ensuring timely and reliable payments for property owners.
*Data Analytics for Informed Decision-Making:
Leverage analytics tools like AirDNA or KeyData to gain insights into market trends, competitor performance, and pricing strategies. Informed decision-making based on data can give you a competitive edge in the dynamic short-term rental landscape.
*Guest Screening and Verification:
Enhance security with guest screening tools like Superhog or Naborly. These tools assess guest risk factors and help ensure that your property is in safe hands.
*Efficient Cleaning and Maintenance:
Implement platforms like Properly or TurnoverBnB to manage cleaning and maintenance schedules efficiently. Automated task lists and checklists can help maintain a high standard of cleanliness between guest turnovers.
*Review Management and Reputation Enhancement:
Monitor and enhance your online reputation using tools like ReviewPro or Revinate. These tools allow you to track guest reviews, respond promptly, and make improvements based on valuable feedback.
*Legal Compliance and Documentation:
Stay on top of legal compliance with tools like Host Compliance or NoiseAware. These platforms help hosts adhere to local regulations and avoid potential legal issues by providing insights into local ordinances and permit requirements.
By incorporating these tech tools into your short-term rental management strategy, you can streamline operations, enhance the guest experience, and position your property for sustained success on online platforms. Embrace the power of technology to make your short-term rental venture a seamless and profitable experience.
Are More Homeowners Selling as Mortgage Rates Come Down?
If you’re looking to buy a home, the recent downward trend in mortgage rates is good news because it helps with affordability. But there’s another way this benefits you – it may inspire more homeowners to put their houses up for sale.
The Mortgage Rate Lock-In Effect
Over the past year, one factor that’s really limited the options for your move is how few homes were on the market. That’s because many homeowners chose to delay their plans to sell once mortgage rates went up. An article from Freddie Mac explains:
“The lack of housing supply was partly driven by the rate lock-in effect. . . . With higher rates, the incentive for existing homeowners to list their property and move to a new house has greatly diminished, leaving them rate locked.”
These homeowners decided to stay put and keep their current lower mortgage rate, rather than move and take on a higher one on their next home.
Early Signs Show Those Homeowners Are Ready To Move Again
According to the latest data from Realtor.com, there were more homeowners putting their houses up for sale, known in the industry as new listings, in December 2023 compared to December 2022 (see graph below):
Here’s why this is so significant. Typically, activity in the housing market cools down in the later months of the year as some sellers choose to delay their moves until January rolls around.
This is the first time since 2020 that we’ve seen an uptick in new listings this time of year. This could be a signal that the rate lock-in effect is easing a bit in response to lower rates.
What This Means for You
While there isn’t going to suddenly be an influx of options for your home search, it does mean more sellers may be deciding to list. According to a recent article from the Joint Center for Housing Studies (JCHS):
“A reduction in interest rates could alleviate the lock-in effect and help lift homeowner mobility. Indeed, interest rates have recently declined, falling by a full percentage point from October to November 2023 . . . Further decreases would reduce the barrier to moving and give homeowners looking to sell a newfound sense of urgency . . .”
And that means you may see more homes come onto the market to give you more fresh options to choose from.
Bottom Line
As mortgage rates come down, more sellers may re-enter the market – that gives you an opportunity to find the home you’re looking for. Connect with a real estate agent so you’ve got a local expert on your side who’ll help you stay on top of the latest listings in our area.
Mastering the Art of Successful Home Selling
Selling a home can be a complex and emotional process, but with careful planning and strategic execution, you can turn it into a successful and rewarding experience. In this blog, we’ll explore key strategies and tips to ensure a smooth and prosperous home-selling journey.
*Prepare Your Home for the Market: Begin by making your home as visually appealing as possible. Declutter, depersonalize, and consider minor repairs or improvements to enhance its overall appeal. A well-maintained and clean home creates a positive first impression.
*Set the Right Price: Research the local real estate market and set a competitive yet realistic price for your home. Overpricing can deter potential buyers, while underpricing may result in missed opportunities for maximizing your return on investment.
*Work with a Knowledgeable Real Estate Agent: Engage the services of a experienced real estate agent who understands the local market dynamics. A skilled agent can provide valuable insights, market your property effectively, and guide you through the complexities of the selling process.
*Professional Photography and Staging: Invest in professional photography and consider staging your home to showcase its full potential. High-quality visuals can significantly impact potential buyers’ perception and generate more interest in your property.
*Create a Strong Online Presence: In the digital age, a robust online presence is crucial. Ensure your property is listed on popular real estate websites, accompanied by appealing photos and a compelling description. Leverage social media platforms to broaden your reach.
*Highlight Unique Selling Points: Identify and accentuate the unique features of your home. Whether it’s a stunning view, a well-designed kitchen, or a beautifully landscaped garden, showcasing these attributes can set your property apart from others on the market.
*Be Flexible with Showings: Accommodate potential buyers by being flexible with showing times. The more accessible your home is for viewings, the higher the likelihood of attracting serious buyers
*Effective Negotiation Skills: Hone your negotiation skills or rely on your real estate agent to navigate offers and counteroffers. Striking the right deal requires a balance between getting the best price and ensuring a smooth transaction process.
*Understand the Closing Process: Familiarize yourself with the closing process to avoid last-minute surprises. Be prepared to address any necessary paperwork, inspections, and potential negotiations that may arise during this crucial phase.
*Create a Positive Atmosphere for Buyers: During showings, create a welcoming atmosphere. Consider subtle touches like pleasant scents, soft music, or fresh flowers to evoke a positive emotional response from potential buyers.
In conclusion, successful home selling involves meticulous preparation, effective marketing, and strategic decision-making. By following these tips and staying informed throughout the process, you’ll be well on your way to achieving a successful and lucrative sale of your home.
The Significance of Short-Term Rental Investments: Unveiling Lucrative Opportunities
In the dynamic landscape of real estate investments, short-term rentals have emerged as a compelling avenue for investors seeking both financial gains and flexibility. This blog delves into the importance of short-term rental investments, exploring key reasons why they have become a popular choice in the investment realm.
*Higher Potential Returns: Short-term rentals often yield higher returns compared to traditional long-term leases. With the ability to adjust pricing based on demand and seasonal fluctuations, investors can optimize their rental income and capitalize on peak periods.
*Diversification of Income Streams: Investing in short-term rentals allows for diversification within the real estate portfolio. Unlike long-term leases that offer fixed income, short-term rentals provide an opportunity to cater to different markets and attract a varied clientele.
*Flexibility and Control: Property owners enjoy greater control over their assets with short-term rentals. This flexibility includes the ability to use the property for personal purposes, make adjustments to pricing and amenities, and respond swiftly to market changes.
*Adaptability to Market Trends: Short-term rental investments are more adaptable to evolving market trends. Investors can easily pivot their strategies to align with changing traveler preferences, technological advancements, and economic shifts, ensuring sustained relevance in the market.
*Technology Empowerment: The advent of online platforms and vacation rental websites has democratized the short-term rental market. Investors can leverage technology to market their properties globally, streamline bookings, and enhance the overall guest experience.
*Mitigation of Long-Term Risks: The risks associated with long-term leases, such as prolonged vacancies or difficult tenants, are mitigated in short-term rental investments. Property owners can minimize exposure to market downturns and navigate economic uncertainties more effectively.
*Meeting the Demand for Unique Experiences: Short-term rentals cater to a growing demand for unique and personalized experiences among travelers. From boutique apartments to themed vacation homes, investors can tap into this trend by offering distinctive accommodations that stand out in a crowded market.
*Regulatory Adaptability: Short-term rentals often exhibit greater adaptability to changing regulatory landscapes. While regulations may vary, the dynamic nature of the market enables investors to navigate and comply with local rules more effectively compared to rigid long-term leasing arrangements.
In conclusion, short-term rental investments have gained prominence due to their potential for higher returns, flexibility, and adaptability to market dynamics. As investors navigate the ever-changing landscape of real estate, embracing the unique opportunities presented by short-term rentals can prove to be a strategic and lucrative choice.
Las Vegas Valley Market Reports for January 11, 2023
Our latest CREG market trackers for January 11th are here! Click the graphs below for updates on the most recent market pricing and market inventory.
3 Keys To Hitting Your Homeownership Goals in 2024
If buying or selling a home is your goal for 2024, it’s important to understand today’s housing market, know your why, and work with industry experts to bring your homeownership vision for the new year into focus.
Over the last year, the economy had a big impact on the housing market, and likely on your wallet too. That’s why it’s critical to have a clear picture of not just the market today, but also on what you want out of it when you buy or sell a home. Danielle Hale, Chief Economist at Realtor.com, explains:
“The key to making a good decision in this challenging housing market is to be laser focused on what you need now and in the years ahead, so that you can stay in your home long enough that buying is a sound financial decision.”
Here are a few things to think through as you define your goals for 2024.
1. Know Your Why
You’re dreaming about making a move for a reason – what is it? No matter what’s happening in the market, there are still many compelling reasons to buy a home today. Your needs may have changed in a way your current house can’t address, or you could be ready to step into homeownership for the first time. Use your why and your motivation as a guidepost in partnership with an expert advisor to make sure your move gives you a lasting sense of accomplishment.
2. Figure Out What Your Next Home Needs To Look Like
You know you want to move, but how would you describe your dream home? The number of homes for sale has grown recently, and that could mean more options to choose from when you buy. But overall housing supply is still lower than more normal years in the market, so you’ll have to work closely with a pro to find what you’re looking for. Just be sure to keep your budget in mind as you balance your wants and needs. The better you understand what’s essential and where you can be flexible, the easier it will be to find a home that’s right for you.
3. Determine if You’re Ready To Buy
Getting clear on your budget and available savings is essential before you get too far into the process. Partnering with a local agent and a lender early is the best way to make sure you’re in a good position to buy. This could include planning how much to save for a down payment, getting pre-approved for a home loan, and assessing your current home equity if you’re selling your existing house.
A Professional Will Guide You Through Every Step of the Process
Buying or selling a home takes expertise to navigate. If that feels a bit overwhelming, that’s normal. Don’t let uncertainty hold you back from your goals this year. A trusted expert will help you bridge that gap and give you the facts and advice you need about today’s housing market.
Bottom Line
Work with a local real estate agent and build a team of industry professionals to be sure you hit your homeownership goals in 2024.
Sell Smarter: Why Working with a Real Estate Agent May Beat Going Solo
If you’re thinking about selling your house on your own, called “For Sale by Owner” or FSBO, there are some important things to consider. Going this route means taking on a lot of responsibilities by yourself – and that can be a bit of a headache.
A recent report from the National Association of Realtors (NAR) found two of the most difficult tasks for people who sell their house on their own are getting the price right and understanding and performing paperwork.
Here are just a few of the ways an agent helps with those difficult tasks.
Getting the Price Right
Setting the right price for your house is important when you’re trying to sell it. If you’re selling your house on your own, two common issues can happen. For starters, you might ask for too much money (overpricing). Alternatively, you might not ask for enough (underpricing). Either can make it hard to sell your house. According to NerdWallet:
“When selling a home, first impressions matter. Your house’s market debut is your first chance to attract a buyer and it’s important to get the pricing right. If your home is overpriced, you run the risk of buyers not seeing the listing.
. . . But price your house too low and you could end up leaving some serious money on the table. A bargain-basement price could also turn some buyers away, as they may wonder if there are any underlying problems with the house.”
To avoid these problems, it’s a good idea to team up with a real estate agent. Real estate agents know how to figure out the perfect price because they understand the local housing market. They can use their expertise to set a price that matches what buyers are willing to pay, giving your house the best chance to impress from the start.
Understanding and Performing Paperwork
Selling a house involves a bunch of paperwork and legal documentation that has to be just right. There are a lot of rules and regulations to follow, making it a bit tricky for homeowners to manage everything on their own. Without a pro by your side, you could end up facing liability risks and legal complications.
Real estate agents are experts in all the contracts and paperwork needed for selling a house. They know the rules and can guide you through it all, reducing the chance of mistakes that might lead to legal problems or delays.
So, instead of dealing with the growing pile of documents on your own, team up with an agent who can be your advisor, helping you avoid any legal bumps in the road.
Bottom Line
Selling your house is a big deal, and it can be complicated. Having a real estate agent can make a huge difference with setting the right price and managing all the details, so you can sell confidently. Connect with a local real estate agent to make the process smooth and take the stress off your plate.
Crafting Unforgettable Stays: Design and Decor Tips for Short-Term Rentals
In the world of short-term rentals, creating a memorable experience for guests goes beyond comfortable bedding and a convenient location. It’s about weaving a narrative through design and decor that leaves an indelible mark on their stay. Here are some invaluable tips to help elevate your short-term rental property into a captivating haven:
Define a Unique Theme: Set the stage by crafting a distinctive theme that resonates with your property’s location or a specific style. Whether it’s a beachside vibe with coastal elements or an urban loft feel with industrial accents, a cohesive theme anchors the overall design.
Focus on Comfort: Comfort is key. Invest in high-quality mattresses, linens, and pillows. Ensure ample storage space and consider the ergonomic placement of furniture to optimize both functionality and comfort.
Personal Touches: Infuse personality into the space through thoughtful touches. Local artwork, curated books, or regionally inspired decor items can forge an emotional connection with guests, making them feel more at home.
Lighting Magic: Lighting sets the mood. Blend natural light with carefully chosen fixtures to create different ambiances. Dimmers, fairy lights, or statement lamps can transform the atmosphere from day to night.
Tech Savvy Yet Simple: Embrace technology to enhance convenience without overwhelming guests. Consider amenities like smart locks, reliable Wi-Fi, streaming services, and easy-to-use appliances that streamline their experience.
Function Meets Aesthetics: Strike a balance between functionality and aesthetics. Multi-functional furniture, space-saving solutions, and well-thought-out layouts optimize the space without compromising on visual appeal.
A Welcoming Entrance: The first impression matters. Spruce up the entryway with lush greenery, a welcoming doormat, or a personalized greeting, setting a positive tone from the moment guests arrive.
Cleanliness Is Key: Maintain impeccable cleanliness. A sparkling clean space is not only visually appealing but also assures guests of a well-cared-for environment, enhancing their overall experience.
Outdoor Oasis: If your property has outdoor space, maximize its potential. Create an inviting outdoor area with cozy seating, mood lighting, and perhaps a small garden or a BBQ setup.
Guest Feedback Loop: Encourage feedback and act upon it. Understanding guests’ experiences helps refine and improve your property, ensuring a consistently exceptional stay for future visitors.
Remember, the essence of a remarkable short-term rental experience lies in the details. By infusing your unique style, paying attention to comfort, and curating a welcoming atmosphere, you can turn your property into a destination guests won’t easily forget. Transforming spaces into experiences is the true art of short-term rental hosting.
So, let your creativity flow and design spaces that not only accommodate but enchant, leaving an enduring mark on your guests’ memories.
How To Turn Homeownership into a Side Hustle
Does the rising cost of just about everything these days make your dream of owning your own home feel less within reach? According to Bankrate, many people are seeking additional income through side hustles, possibly to cope with those increasing expenses and save for a home. This trend is particularly popular with younger individuals who may be dealing with student loan debt (see graph below):
Here are two strategies that can not only make homeownership more affordable in the short term, but turn it into a lucrative side hustle that can pay off down the road.
Transforming the Challenge of a Fixer-Upper into an Opportunity
One thing you could do to help you break into homeownership is consider purchasing a fixer-upper. That’s a home that may be a bit less appealing and as a result has lingered on the market longer than normal. According to a recent article from U.S. News:
“The current state of the housing market may have you expanding your options to try to find a home that you can afford. A fixer-upper that needs some updating and a little love can feel like a welcome alternative to move-in ready houses that go off the market before you can even take a tour.”
By opting for a home that requires some work, you may see two big benefits. For starters, you may find it’s easier to find a home because you’re not looking for that perfect option. Plus, it may also help you enter the housing market at a lower price point. This strategy provides a more affordable way to become a homeowner while also offering the potential for future profits.
Yes, the home may need a little elbow grease, but investing time and effort into gradually enhancing your house not only makes it a home but also increases its future market value. So, while you enjoy the satisfaction of turning a house into a home, you’re also building equity that can be unlocked when it’s time to sell.
Renting Out a Portion of Your Home To Make It More Affordable
Another savvy strategy is to purchase a home with the upfront intention of renting out a portion of it. According to a recent press release from Zillow, renting out a part of their home is already very important for most young homebuyers (see graph below):
This approach serves a strong purpose. As Manny Garcia, Senior Population Scientist at Zillow, says:
“For those first-time buyers navigating the ‘side hustle culture,’ where a regular 9-to-5 might not quite cut it for homeownership dreams, rental income can step in to help . . .”
Basically, it can help you afford your monthly mortgage payments. So if you’re open to it, renting out a portion of your home not only helps with affordability, but it also positions you as an investor and turns your home into a source of income.
Bottom Line
In the face of today’s affordability challenges, both of these strategies offer more attainable paths to homeownership, especially for younger buyers. If you want to discuss these options and see how they might play out for you in your local market, connect with a trusted real estate agent.
Navigating Real Estate Investment: Strategies for Success
Investing in real estate remains a compelling avenue for wealth creation, offering diverse opportunities and lucrative returns. However, the key to success lies not only in identifying these opportunities but also in implementing the right strategies to maximize profitability and mitigate risks.
Understanding Investment Avenues
Real estate investment isn’t a one-size-fits-all approach. It encompasses various avenues, each with its own dynamics and potential returns. Exploring options like rental properties, commercial real estate, flipping houses, Real Estate Investment Trusts (REITs), or crowdfunding platforms allows investors to diversify and tailor their portfolio to their goals and risk tolerance.### Research and Due DiligenceSuccessful real estate investing hinges on thorough research. Analyzing market trends, evaluating neighborhood growth prospects, and understanding rental demands or property appreciation potential are crucial steps. Conducting due diligence involves financial assessments, property inspections, and understanding legalities to ensure informed investment decisions.
Financing Strategies and Risk Mitigation
From traditional mortgages to creative financing options like partnerships, seller financing, or leveraging other assets, the right financing strategy is pivotal. Moreover, implementing risk mitigation tactics such as diversification, maintaining liquidity, or having contingency plans can safeguard investments against market fluctuations or unforeseen circumstances.
Long-Term Wealth Building vs. Short-Term Gains
Investors often grapple with the choice between long-term wealth accumulation and short-term gains. While flipping properties may yield quick profits, rental properties or REITs offer sustained income streams and potential appreciation over time. Balancing these strategies aligns with individual investment goals and risk profiles.
Adopting Technology and Market Insights
Embracing technology in real estate investing can offer competitive advantages. Utilizing data analytics, AI-driven tools for property valuation, or market forecasting aids in making informed decisions and spotting lucrative opportunities ahead of the curve.
The Importance of Continuous Learning and Adaptation
The real estate market is dynamic, evolving with economic trends, regulatory changes, and societal shifts. Continuous education, staying updated with market insights, and adapting to emerging trends are integral to sustained success in real estate investing.
Conclusion
Real estate investment is a journey that demands strategy, research, and adaptability. Whether aiming for passive income streams or capital appreciation, the right strategy aligned with individual goals, risk tolerance, and market insights is key. By understanding the nuances of different investment avenues, leveraging technology, and staying informed, investors can navigate the realm of real estate investment with confidence and portential for long-term success.
Are There Actually More Homes For Sale Right Now?
If you’re looking to make a move, you want to be sure you have the latest information on the housing market. To help make that possible, here’s an update on the supply of homes for sale today. Whether you’re looking to buy or sell, the number of homes available in your local market matters to you. Take a look below.
What’s the Truth About Today’s Housing Inventory?
While the story for the past few years has been how few homes are on the market, recent national data may leave you feeling a bit confused. That’s because Realtor.com shows inventory is actually growing a bit month-over-month in many parts of the country (see the blue states in the map below):
Does That Mean the Days of Limited Inventory Are Over?
That might make you wonder: are the days of tight housing supply behind us? The short answer is no. Context is important. While you may see headlines saying inventory is up, data also shows there are still significantly fewer homes for sale than there would usually be in a more normal market.
The graph below compares the latest active listing counts (homes currently available for sale) with the most recent normal years in the housing market (2017-2019):
As Lance Lambert, Founder, ResiClub Analytics, explains:
“Housing market inventory is so far below pre-pandemic levels that October’s big jump is still just a drop in the bucket.”
What does that mean for you? Remember, real estate is hyper-local. Partnering with a trusted real estate agent will help you gain a better understanding of the inventory situation in your specific market.
If you’re looking to buy, you may have slightly more options than you did in recent months, but you still need to brace for low inventory. A great agent will be able to share their expertise and key strategies that have helped other buyers navigate today’s ongoing low housing supply.
And, if you’re trying to sell, rest assured you haven’t missed your window of opportunity to potentially get multiple offers or see your house sell quickly. While inventory has ticked up some nationally, overall, it’s still low and may be down even more in your area.
Bottom Line
If you’re looking to buy or sell a home, connect with a local real estate agent so you can make sure you’re up to date on all the latest trends that could impact your move, including today’s housing supply.
The Rise of Short-Term Rentals
In recent years, platforms like Airbnb, Vrbo, and Booking.com have revolutionized the accommodation industry. They’ve empowered homeowners to monetize their spaces and provided travelers with an array of lodging options beyond traditional hotels.
Benefits Galore
1. **Personalized Experiences:** Short-term rentals offer a homely atmosphere, giving travelers a glimpse into local life, culture, and traditions. Guests can live like locals, exploring neighborhoods and immersing themselves in the destination’s vibe.
2. **Cost-Effective:** In many cases, short-term rentals can be more affordable than hotels, especially for families or groups traveling together. They often provide more space and amenities at a comparable or lower price.
3. **Flexibility and Variety:** Whether it’s a studio in the heart of a city or a villa overlooking scenic landscapes, short-term rentals offer a diverse range of accommodations to suit different tastes and preferences.
Challenges and Considerations
1. **Regulatory Issues:** The rapid growth of short-term rentals has raised concerns about their impact on housing availability, local communities, and regulatory compliance in certain areas.
2. **Quality Assurance:** While platforms implement review systems, ensuring the quality and accuracy of listings can still be a concern for some travelers.
3. **Responsibility and Trust:** Both hosts and guests must navigate a level of trust, responsibility, and mutual respect. Clear communication and adherence to rules are crucial for a positive experience.
Future Trends
Looking ahead, the short-term rental landscape continues to evolve. Sustainability, enhanced customer service, and increased collaboration with local communities are expected to shape the future of this industry.
In conclusion, short-term rentals have redefined how we travel, offering a spectrum of choices and personalized experiences. While facing challenges, their popularity persists due to the unique blend of affordability, comfort, and local immersion they provide.
Whether you seek a weekend getaway or an extended stay, short term rentals remain a compelling option for a memorable travel experience.