Tuesday, December 28, 2010
Real estate investing in Las Vegas is back on the historic trend lines according to the latest market data to be released by title companies. This is both good and bad news.
What this means is that real estate prices for single family homes in Las Vegas, which shot up disproportionately for three years beginning in 2004 and peaking in 2007, have now returned to the trend line that they always "should" have followed.
This may be bad news for some homeowners who purchased during the 2004-2007 price boom and were hoping for a speedy market recovery to recoup their recent losses. Instead, what will most likely occur, is a slow, but steady rise of real estate prices here in the Las Vegas valley that mirrors the average national appreciation rate of approximately 5.4% annually over the past five decades. At that rate, many of these distressed Las Vegas homeowners may have to wait 10 or more years to see their properties return to their purchase price.
However, this return to the average trend lines may be good news for new investors flooding to the area to try their hand at real estate investing in Las Vegas. Now that the average trend line has been reached, it seems unlikely that property prices will drop much further. And, because rents have not declined nearly as much as property prices, rental units are cash flowing better than ever in the Las Vegas valley. This creates a perfect investment opportunity where investors can receive monthly positive cash flow on their properties and expect steady, yearly appreciation.
If you are interested in learning more about real estate investing in Las Vegas, please contact Glenn Plantone.
Glenn Plantone
Wynn Realty Group
Office: (702) 656-3264
Mobile: (702) 769-9872
Email: gsplantone@gmail.com
www.viewpointequity.com
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