Las Vegas Real Estate market when INTEREST RATES Go down
Impact of Decreasing Interest Rates on Buyers
• What will the impact of decreasing Interest rates have for Buyers? Interest rates affect the cost of borrowing money over time, and so lower interest rates make borrowing cheaper—allowing people to spend and invest more freely.
• When interest rates go down, borrowing rates on new car and house purchases should also come down, allowing buyers to stretch their budget. Variable interest rates on credit cards and home equity lines should also come down, reducing borrowers’ monthly expenses. These factors increase the buyers’ purchasing power and buyer demand.
Seller’s Market Dynamics
• So how do lower interest rates impact Sellers? Lower interest rates will increase Buyer demand for homes. Higher demand can reduce the overall supply of homes. As demand increases and there is more competition among buyers then home values may increase.
Las Vegas Market Specifics
• Currently in Las Vegas, we have around a 3 ½ supply of inventory. This means if no new homes came on the market, we would run out of available listings in 3 ½ months. According to our National Association of Realtors, a six-month supply inventory is associated with moderate price appreciation and somewhat of a normal market. Less than a 6 months’ supply is a Buyer’s market which tends to push prices up more rapidly. As we only have a 3 ½ supply, we are currently in a Buyer’s market. Our market values have been increasing since 2012 and we have been in mostly a Buyers’ market for over the last 10 years.
Investment Opportunities
• When interest rates are lower, it can be an attractive time for investors to purchase properties. This is because lower interest rates mean lower mortgage payments, which can increase the profitability of a real estate investment. Low interest rates provide real estate investors with the opportunity to borrow money that’s cheap. Lending standards become more relaxed, and banks begin competing harder to win your business.
Preparing for a Purchase or Sale
• So as a buyer what can you do to prepare for market changed due to interest rate fluctuations. We will likely see demand pick up in the next couple of months. Once this happens competition will increase and likely values will do so also. There may be a window of opportunity NOW to find a home before Provide tips for buyers and sellers in Las Vegas to prepare for market changes due to interest rate fluctuations.
• Discuss the importance of pre-approval, market research, and working with a knowledgeable realtor.
Future Predictions and Advice
• Offer your insights or predictions about the future of the Las Vegas real estate market in relation to interest rates.
• Share advice on how to stay informed and make smart decisions. This is a great opportunity to promote getting on your newsletter or anything else you might be able to offer them to stay informed.
