Simmons Team Vegas

Chief economist, David Crowe, of the National Association of Home Builders, stated recently that the US housing market will begin a recovery turnaround in 2012. This forecast predicts that we will have a solid housing recovery by 2013. The sales of NEW single family homes are predicted to increase 19% this year; in numbers that equates to 360,000 NEW home sales this year up from 306,000 in 2011.  The prediction for 2013 is NEW home sales of 505,000!  That is an increase of 40%.  Other economist are not so optimistic but only time will tell. 

The NEW home building industry in Las Vegas

Home builders in the Las Vegas valley have been purchasing residential land at bargain prices over the past 3 years.  The cash rich builders have been purchasing land from the financially drained builders.  What this means is that NEW home prices will be affordable since the cost of the land is reasonable.  NEW home prices were soaring prior to 2008 due to the rising cost of the land which became outrageously high and the high cost of labor and materials.

Las Vegas will be ready for the NEW home buyers.

While the country has experienced the worst recession in our recent history, the real estate market shows signs of rebounding in certain areas of the country. Las Vegas is definitely one of those areas. Driving the steady rebound are the low interest rates and historic low home prices. Investors and first time home buyers are fueling the sales numbers.

At a glance, here are the top 11 reasons for buyers, sellers and real estate agents to be optimistic about Las Vegas real estate in 2012:

1. Interest rates continue to be low
2. Home prices are stabilizing and/or starting to rise.
3. Home sales are increasing.
4. Distressed properties continue to be the majority of sales.
5. The short sale processes have improved and will help reduce foreclosures.
6. Investors will continue to purchase Las Vegas homes and provide housing for the displaced homeowners.
7. New home builders continue to provide huge incentives for buyers of new homes.
8. Many cities around the country are experiencing a steady rebound, which is good for Las Vegas.
9. Las Vegas continues to be a desirable place to live with a lifestyle unlike any other city.
10. People from other climates and lifestyles move here when their homes sell in other parts of the country.
11. The U.S. Housing economists are predicting recovery, too.

Las Vegas is poised to grow. Has the past 3 years set the stage for future dynamic growth? It appears so!