LAS VEGAS REAL ESTATE

2008

A Great Year to Purchase a Home!

It's no secret that the real estate market has declined steadily during 2007.  Most experts think this trend will continue through 2008.  Waiting for the "bottom to hit" before committing to buy now could be a costly mistake for at least three reasons.

FIRST:  Interest rates on home loans are still at historic lows.  Buyer's markets like this come around about every 15 years but interest rates are usually much higher when they do.  Fact is, we've never had interest rates this low during this type of real estate market.  Ever.

SECOND:  Potential buyers have more choices now than ever.  For years people were forced into homes they only "kind of liked".  They were spending top dollar, settling into neighborhoods that didn't love and getting into homes that didn't fulfill their true needs or desires.  Things are different today.  A buyer can find the house and the neighborhood and the amenities they want and still negotiate an amazing deal.

THIRD:  It is difficult to know when we really hit the bottom of the market.  From past experiences, we see that the media begins to report a market turnaround about 6 months after it actually is happening.  That means people who jump in when the media tells them the coast is clear will do so 6 months into a market controlled by a seller.  In the meantime, interest rates may have increased or valuable loan programs may have disappeared, limiting a buyer's options.

The reality is that a declining real estate market provides fantastic opportunities for most buyers.  In particular, first time home buyers, homeowners who want to upsize and long term investors should be geared up and ready to take advantage of current conditions.

*  First-time buyers who were priced out of the market over the past few years may finally be able to afford a home.  With improved federal loan programs, low prices and a huge selection of houses available, first-timers would be wise to start looking now.

*  Homeowners wanting to "buy up" have a real advantage in this market.  Yes, they may take a price hit on their current home, but they will be able to take advantage of the even larger hit someone else has taken on a more expensive home.  Plus, buying in a low market means the buyer's property taxes will be lower than they otherwise would be.

*  Long-term investors are already starting to do their research.  Investors know that while real estate goes through peaks and valleys, its' value has always gone up.  This is not the market for fix-and-flip investors but it is a great time for the ones looking to hold for 5 or more years.

If you've been thinking about buying real estate, it's time to get serious about it.  Talk to a real estate professional who can help you search for opportunities and watch prices for you.  A Realtor can streamline the buying process and provide you with the information you need in order to make the best choices.  In addition, consider meeting with a lender to find out what loan programs are available, what programs you're qualified for or to evaluate your credit standing.  A good lender can help you improve your credit score and save you lots of money in interest.  To be sure, this is not the type of market to "go it alone".  But there are great deals and great loans out there.  Make sure you take advantage of them.

Kent Farrell is an experienced Real Estate Broker with The Ashton-Farrell Group.  Kent and his experienced Team has a reputation for guiding their clients through the sometimes confusing process of buying and selling real estate including whether it really is the best for them to buy, sell or wait.  The Ashton-Farrell Group can be reached at (702) 990-8396 or theteam@ashtonfarrell.com