What a year 2006 has been for all of Las Vegas real estate!! Summerlin, a major area located in the SouthWest part of Las Vegas, is one of the largest master planned single family (primarily) home communities in the US. Like much of the US market, inventories of new and resales homes have swelled and new home builder permits are down. Prices are correcting and the number of vacant homes are up. We know sellers are lowering their single family home prices so how long with this situation last? Now Economy.com on Fox news December 2, 2006 changed their real estate forecast for the timing of the housing correction. What does that mean for Summerlin?
So why did Economy.com change its real estate forecast from 2Q 2009 before we would see a turnaround? They finally realized what we’ve been saying all year. The downward correction in major real estate markets like Las Vegas began at the beginning of 2006 not at the end. Further, the correction has seen a steeper percentage drop in home prices than expected. We’ve reported that too all during this year.
So now Economy.com is saying that they expect most major real estate markets to continue a reduction in value into 2007. However, they are also forecasting that 2007 should be the end of the correction. That’s what we’ve been seeing so far and we’re glad to see they are getting on the same page for las vegas real estate.
Why is 2007 most likely a turnaround point for Las Vegas real estate? With over 8,000 people moving to Las Vegas each month, Las Vegas is still the fastest growing city in the US. New home builders have nearly stopped construction which in turn will increase demand for the resale home inventory. Once we see the curve moving downward of the resale inventory, which we expect to see by Summer 2007 or earlier, the momentum will accelerate faster than buyers trying to time the market will anticipate. Those buyers in some cases bought over priced homes at the market peak of October 2005 and will miss the bottom to buy at the best price. In fact, we’ve already seen the number of resale homes across Las Vegas drop below their peak this year but it’s too early to tell if that’s is due to sellers pulling their homes off the market to wait and see or we are really reducing our resale inventory of single family homes.
For now, the competition has grown so fierce lately with new home standing inventory builders paying large commissions and giving great incentives to buyers. Luxury Realty Group has created special incentives for Summerlin new home buyers where for specific new home neighborhoods we are contributing up to 1% of the commission to your closing costs (subject to certain restrictions and subject to cancellation at any time). This is a limited program and will only be available for a short time period. This and other deals won’t last long and those buyers waiting on the sidelines to purchase are missing a one-time great opportunity to buy these deals with such low interest rates.
So what about timing to sell a Summerlin luxury home? To sell, we expect further pricing softness during 2007 up to 10% in the market depending on the Summerlin neighborhood. We also expect to see an increase in the number of foreclosures over the next nine months. It’s looking more likely the bottom of the market will be Summer of 2007 and the Fed’s interest rates will play a major role in that timing for a bottom. If you plan to sell, contact us for a current market analysis of your home in comparision to current market conditions. With a normal market for luxury homes taking 9 to 12 months for days on market, your timing to sell may be earlier than you think. Call us today at 702-456-7080 to discuss how we can help you sell your luxury Summerlin home.
To buy a Summerlin Home, with continued softness in the market, we believe lots of more creative deals will begin to appear on the luxury real estate radar beginning Spring of 2007. If buying is in your forecast, contact us soon to be on our luxury home deal list as we are monitoring the luxury single family home market in Summerlin and other areas of Las Vegas on a frequent basis.
Our brokerage added two luxury real estate agents this month who will increase our ability to serve our Summerlin buyers and sellers.
Copyright 2006 Luxury Realty Group, Inc. All Rights Reserved.
Disclaimer: The information contained in this newsletter does not in any way promise, guarantee, forecast appreciation, predict future prices, forecast days on market to sell, imply specific demand or supply and does not predict or guarantee positive cash flow from investments. As in any investment, the buyer or seller should discuss real estate purchases with their CPA or attorney. Buyers of condo-hotel units, residential condos or single family homes do so at their own investment risk. Luxury Realty Group’s primary goal in this newsletter is to educate and show information that may possibly indicate a trend in real estate and nothing more. How a buyer or seller uses this information is up to that individual’s own decision and analysis process.
