So I spent the afternoon with Zoltar to see what lies ahead in the new decade. He rambled on about anything and everything but I got nothing worth reporting from him.
Since my 2019 Predictions From a Cloudy Crystal Ball ended up being pretty accurate I thought I would give 2020 a shot.
Heading into my 30th year as an Agent/Broker of Vintage Homes in Las Vegas I decided I would do my research and rely on my experience to see what 2020 is going to bring us.
For this year I have a great new FREE APP for you. Now you can keep up on the Las Vegas housing market right on your phone.
I did not see a winter slowdown as with most years. October and December were some of my best months this year. I have a list of clients that are ready to list their homes in the first quarter of 2020. I also have active buyers being very specific about what they are looking to buy as soon as we find it so it looks like we are going to have a good start to the year.
Values are not coming down. In 2018 prices were climbing monthly. Multiple offers on almost every house. 2019 saw a slow down in appreciation to 6% overall of the valley while it was a bit higher in the Vintage Areas. While inventory did increase to about a three-month supply it has slipped in the last two months. Most of the Vintage area that I work in has about two months of supply currently listed. About half of what is currently on the market is overpriced and not selling. There are many reasons for this. Some sellers believe their home is worth more than what the market is willing to pay at this time. Some agents that are not familiar with Vintage homes overprice them. Houses in the Vintage areas that are priced right are still selling in less than thirty days.
The “experts” said we would see a 9% increase from 2018 -2019. I predicted that it would be 5% to 6% and ended up being correct. I see the same thing for 2020 over 2019. There is nothing currently in the market place that is pointing to a larger increase or a decrease in Values.
Interest rates decreased in 2019 from what they were in 2018. Almost everything shows that they should remain stable in the first half of 2020. Hard to say after that in today’s economic climate. Many like to say rates are going to go up so buy now. I don’t like to do that since none of us really know what tomorrow holds.
There are a lot of big building projects currently going on in Las Vegas. Many of them are not Gaming related, the valley is finally diversifying. Other industries are seeing this is a cost-efficient place to do business. The new building brings jobs and the new people moving to the valley need homes to live in. Rent increases have outpaced much of the country so more people are finally understanding that it is cheaper to own than rent in Las Vegas. Most of the bigger projects are projected to see completion in 2020 and 2021. There are other projects being discussed that could extend the building boom but those come and go. Don’t count on anything until it comes out of the dirt.
The population is on the rise and is outpacing just about every state. Since the bottom of the recession, Clark county as averaged over 2% annual population growth.
There is not a day that goes by that I don’t see someone yelling “BUBBLE, BUBBLE” yet they don’t provide any information that would show a bubble is coming. Even during recessions, housing prices have increased an average of 3% in history. Housing prices do not cause bubbles. I wrote about this subject in depth in September 2018 so I won’t labor on it here. What I said then still holds true today. Check out what my experience and research show by CLICKING HERE.
I can give you a free evaluation of your home with no obligation. CLICK HERE.
I can also keep you up to date on the listings, sales, and closings in the Vintage Neighborhoods that I have been representing since 1990 with a daily report. CLICK HERE to receive this free report.
Don’t trust ANYONE that tries to tell you what your home will sell for without seeing it. There are too many factors in pricing a house right in today’s marketplace.
Disclaimer: This article includes predictions for the U.S. real estate market into 2020. Economic and housing forecasts are the equivalent of an educated guess and should be treated as such. No one can predict future real estate trends with complete accuracy.