Low prices, low interest rates driving home sales across valley, Realtors say

By Conor Shine

Tuesday, April 10, 2012 | 2 a.m.

The Las Vegas residential real estate market continues to recover from the effects of the recession as a combination of affordable home prices and low interest rates feeds a valleywide interest in purchasing homes.

“It’s nuts,” said one local Realtor. “The good deals are getting multiple offers on the first day.”

Another Realtor used the word “mayhem” to describe the situation, as the number of residential properties in the valley available for resale dwindles to just over 6,000, down from a recession-era high of 22,000 properties, according to numbers from the Greater Las Vegas Association of Realtors.

Low home prices and interest rates are a major driver for the increase in activity, said Realtor Nancy Tucker. As residential prices fall in line with the rental market, more investors are being lured back to Las Vegas, she said.

The low prices also create new opportunities for first-time homebuyers who previously were priced out of the market, Tucker said.

“We’re in a fantastic market,” Tucker said. “Las Vegas is selling again.”

With the competitive, fast-paced days of Las Vegas real estate beginning to make a return, here are several factors Realtors recommend homebuyers consider when shopping.

• Keep budget in mind

  The recession sent home prices tumbling, and although there are signs of recovery, there still are plenty of deals to be had.

  Tucker, a Realtor with Coldwell Banker Premier Realty, said she had a two-story, 1,628-square-foot home that would be listed soon at a price of $129,900, a steep discount from the $450,000 price when the house last sold in 2005.

  But homebuyers should be wary of spending their entire budget on the purchase price or risk having money to spend on needed repairs or upgrades, said Bridget Magnus, a Realtor with Prudential Americana Group.

  “For clients on a strict budget, you have to keep in mind at all times the condition of the property,” Magnus said. “How much is it going to cost to repair things and make it a place you can reasonably live?”

• Act fast when you find the ‘right’ house

  Increased home buying makes for a more competitive market, with properties often receiving dozens of offers within days of being listed, said Sam Wagmeister, a Realtor with Prudential Americana Group.

  “Buyers need to act fast when they find a property they like,” he said.

  To improve your chances of getting your dream house once you’ve found it, Wagmeister said buyers should have “all their ducks in a row,” including setting a budget, getting pre-approved for a loan and doing market research.

  “It’s so if we find the right house, they don’t say, ‘I want to see what else is out there,’” Wagmeister said. “When you start seeing what else is out there, you miss out on the first house.”

• Consider pros, cons of HOAs

  Homeowners associations are a common feature of communities and developments around the valley. Living under the rules of an HOA has pros and cons homebuyers must consider.

  While association dues may at first seem like an unnecessary, extra cost, Realtor David Lee said the services an HOA provides could help protect your investment.

  Especially in gated communities, rules for property care and the maintenance of common elements can help a home “hold its value a little better and give you peace of mind,” said Lee, who is the broker and owner of Las Vegas Valley Realty and Painted Desert Realty.

  But overbearing HOAs can be a turn off to potential buyers, Magnus said.

  “It can be a double-edged sword,” she said. “If they’re pounding on your door every week because your grass is an eighth of an inch too high, are they really helping you?”

• Location, location, location

  The buying frenzy has stretched to all corners of the valley, Realtors said, but areas like Henderson, Summerlin and Mountains Edge remain especially popular.

  Tucker said buyers should consider their commute to work, what schools are nearby if they have children and what amenities – like parks, pools and restaurants – are nearby.

  When shopping for homes, especially online listings, it’s important for buyers to consider what sits next to the house in question.

  “They often don’t put in the thought that it might back up to a busy road,” he said. “I discourage those because those are hard resales.”

• Short sales

  Short sales remain a popular option for homebuyers looking to score a deal. But a federal tax deduction that encourages short sales is scheduled to expire at the end of 2012, making now the time to act for buyers, said Wagmeister.

  Before pursuing this option, buyers need to consider that short sales often take longer to close than traditional sales or homes bought out of foreclosure, Tucker said.

  “I always tell my clients to be prepared to wait a minimum of 90 days on a short sale,” Tucker said. “If you don’t have to get into something immediately, there are some amazing deals out there.”

CORRECTION: This version reflects a federal tax deduction that encourages short sales is scheduled to expire at the end of 2012. | (April 11, 2012)