Las Vegas is one of the fastest-growing cities in America. Federal data also shows that Henderson, a Las Vegas suburb, was the fastest-growing city in America for the second consecutive year. With more people moving into Southern Nevada, the competition for homes is increasing. Because there are not enough houses on the market to go around, prices have soared.
Homeowners Could See Strong ROIs
Zillow estimates that home prices increased by almost 7% last year and may increase by almost 9% next year. This continues a trend of Las Vegas growth since the housing market first began to recover in 2012. Note that many of the people moving to Nevada are coming from California. Those who sold far more expensive properties in the Golden State may have a much larger budget for Nevada.
Interest Rates Are at an All-Time Low
For buyers of more modest means, housing affordability remains a constant obstacle to ownership. Lower interest rates can help compensate for this by leading to lower monthly payments. For instance, a home loan of $200,000 at an interest rate of 6% requires qualifying for a monthly mortgage of $955. At 3%, the monthly payment falls to $843. Right now, interest rates are at a record-setting low to encourage the general public to circulate money in the economy.
Processes Have Improved
The 2020 public health crisis compelled banks to overhaul their lending practices and rethink their applications. This led to more efficient systems that work remotely, better than ever. It also has sped up the lending process, and by extension, the closing process. Ellie Mae estimates that lenders now only need around 49 days to complete the closing process.
Moving May Seem More Attractive
After spending more time in their homes than usual, many Americans have fallen out of love with them. You may have also decided the general area may no longer suit your preferences. Selling your home opens up a world of opportunities:
- Buying a bigger home so you can have space for online study and remote work
- Moving to the countryside where you are closer to outdoor activities
- Downsizing to an RV so you can travel the country
- Purchasing a multi-unit property so you can rent out the additional units
- Moving in with family members to share expenses and save money
Homeowners Who Wait May Regret It
Whether the market continues to favor sellers may depend on how the government handles foreclosures and evictions over the next six or so months. Homeowners all across the country have been struggling to keep up with mortgage payments, so default rates may climb. People who felt reluctant to list their homes during an economic crisis may also change their minds. If these things happen, homeowners may not see the same ROI as if they sold earlier.
If you just refinanced your home or you feel worried about your ability to qualify for another mortgage, waiting a little longer makes sense. For everyone else, it may be in your best interest to sell your home as soon as possible before the market floods with homes and competition skyrockets. Contact Platinum Real Estate Professionals for information on how we can help you list and sell your home.