With climbing mortgage rates and an economy grappling with high inflation, the Las Vegas real estate landscape is indeed changing. What does that mean if you’re trying to sell your Las Vegas house fast in today’s market? Fortunately, there are still ways you can sell your home quickly despite the more uncertain conditions.
Falling from Record Highs Looks Dramatic
Early in 2022, people clamored to buy homes, with multiple offers and bidding wars being part of the landscape. Now, houses are sitting, and price cuts are common. What happened?
Mostly, it’s the mortgage rates. In an effort to fight spiking inflation, the Federal Reserve has been raising interest rates. For the first time since 2008, mortgage rates have topped 6%. That’s an increase from the pandemic low of 2.68% in December of 2020. [i] The result of these high rates? Housing is the least affordable it has been in over 37 years. [ii]
Not surprisingly, these rates are scaring away buyers. A report from Redfin showed homebuyer bidding wars have vanished. [iii] In fact, competition among buyers declined to its lowest levels since the beginning of the Covid-19 pandemic. At that time, real estate transactions came to a screeching halt.
That means the same house will cost dramatically more for traditional buyers who need to finance. Fortunately, others in the market are not impacted, and that’s cash buyers.
Why It’s Different This Time
Most people clearly remember the challenging real estate market starting in 2008. Back then, the world was in the grips of the Global Financial Crisis. Beginning that year, Las Vegas houses –and those nationwide–fell precipitously, with millions of people losing their homes. While no one has a crystal ball, there are some key differences today.
- Due to the past few years’ low interest rates, most Americans decided to lock in fixed interest rates. In 2008, adjustable rate mortgages were a common choice for buyers. Today, less than 5% of outstanding mortgages are adjustable. [iv]
- In 2008, lending practices were loose and often predatory, with people approved for homes they couldn’t afford.
- Worse, subprime mortgages were usually high-rate adjustable mortgages. It is estimated that over 80% were adjustable at that time. [v]
- Today, banks have been very tight with lending. Especially since the pandemic, it has been difficult to get approved for a mortgage.[vi] Most borrowers need to put down 20%.
- In 2008, many home sales required no money down. Also, some lenders at that time did not even require proof of income. [vii]
Clearly, today with high down payments and only the most qualified getting approved, the housing market is much more stable than in 2008.
Also, while prices are dropping, they are falling from historically strong levels. According to the Las Vegas Association of Realtors, the median price for August is still up 16% from the same month in the previous year. [viii]
With that said, if you plan to sell your house soon and get the most for your home in Las Vegas, then calling a respected home-buying company like Gr8housebuyers can save you time, they make the home selling process simple, and provide you multiple home-buying options!
Different Choices for Home Owners
The fact that most people now have fixed interest rates ensures their mortgage payment remains the same. This may force people to stay put and not sell, limiting the volume of homes coming on the market.
This lower inventory may serve to stabilize the market. This also differs from 2008, when all those adjustable mortgages forced people to sell or go into foreclosure when their monthly payments spiked.
Today’s conditions can keep a much tighter lid on supply in many areas.
And homeowners today have another option. According to a Wall Street Journal podcast, with more buyers remaining on the sidelines, homeowners are increasingly deciding to simply rent their home.[ix] This works in some cases since the average national rent recently reached an all-time high.[x] This is an option for many people that wasn’t cost-effective in previous years.
If you are renting, and tired of being a landlord, then call Gr8housbuyers today, because we are able to make offers on houses occupied with tenants too! We can even show you how to keep a long-term real estate investment at today’s premium price without the liabilities of a landlord! The obligation of being a landlord can be a hassle, stressful, and time-consuming. Gr8housebuyers has creative solutions that make your life easier, so you don’t have to worry about micro-managing a rental, yet you are still getting “TRUE” passive income!
Ask about our additional home buying options, and we’d be happy to assist you.
Buyers Backing Out of Deals at Record Rates
Recent statistics show that Las Vegas homebuyers are now backing out of real estate deals frequently. The rate just hit 23%, one of the highest in the nation.[xi] This can make a traditional sale hazardous because you may end up with a deal that doesn’t close.
Still Want to Sell Your House? An Experienced Cash Buyer Like Gr8housebuyers May Be Your Best Bet.
As you can see, while the market may not be as bad as the media makes it out to be, it’s still not a good time to sell. With inflation staying elevated, the Federal Reserve has indicated that it is committed to more interest rate increases.[xii] So this will put increasing stress on traditional homebuyers.
That’s why a cash buyer may be your best bet if you want to sell.
Best Way to Sell Your House in Las Vegas in 2022
But finding an individual or traditional cash buyer may be a matter of chance. In the meantime, the housing market could soften further, plus you are responsible for keeping the home up, showing it, etc. And you’d likely be paying a realtor their commission, plus closing costs which further reduces your profit.
That’s why many sellers are increasingly turning to cash buyer agencies like Gr8housebuyers.
Why Work with a Las Vegas Cash Buyer Agency?
When you’re wondering how to get the most for your Las Vegas home, a cash buyer agency is likely the answer. These are agencies set up only to buy houses directly from you so you can get quick cash for your home in Las Vegas, Nevada.
Companies such as Gr8HouseBuyers.com make the process painless. With this approach, you can avoid the increasing problem of sales failing to close, and you have a few additional options to choose from!
Here are a few of our benefits home owner’s love:
- An appraisal is not required.
- No showings, so no cleaning or staging is needed.
- You don’t need to worry about repairs.
- No commissions and no additional closing fees to worry about.
- No complex and prolonged process.
Ultimate Convenience with a Cash Real Estate Deal
By selling to a cash buyer agency, you will save significant time by not having to prepare your property for sale. You’ll also have far more control over the entire process. Instead of being subject to the buyers’ timeline, you can pick your closing date. You also can arrange to lease back the property after closing the sale (and getting the cash) if that suits your schedule.
If your home is rented, you can sell without inconveniencing the current tenants.
Gr8housebuyers – This agency of professional home buyers is here to truly lend a hand. You can look past minor issues and repairs, and receive a free cash offer for your home as-is today!
Our Best Advice for Selling Your Las Vegas House ASAP
At Gr8housebuyers, our goal is to keep our clients informed whether they sell to us or not. Here are our best tips based on our extensive experience helping home sellers in the Las Vegas real estate home market:
- If you’re going the traditional sale route, understand that with mortgage rates increasing and deals falling through, you have to be more flexible. Understand it may take significantly longer than you anticipate to complete a sale.
- Since appraisals and mortgage rates may price out many buyers as rates tick up, and favor cash buyers.
- Factor in all your costs, including realtor commissions, closing costs, and holding costs when comparing offers.
- Consider a cash sale if time and convenience is important to you.
- A cash sale can also help you lock in higher prices today. As more buyers get priced out of the market, prices may continue to decrease.
Key Takeaway
While prices are trending down, we don’t necessarily believe the sky is falling on Las Vegas real estate. Though downside is expected, we don’t anticipate it to reach the point of 2008, for all the factors discussed. But time is critical, so if you’re selling, be patient or work with a cash buyer agency that has various options to sell your Las Vegas home quickly like Gr8housebuyers.
Want More Information about Selling Your Las Vegas Home to a Cash Buyer?
Gr8housebuyers®, a leading and trusted Las Vegas investment company that specializes in acquiring real estate directly from homeowners. We are different from other cash home buyers. We treat every homeowner like family and work with you to find the best solution that makes you happy because we strive to exceed your expectations.
With our service, you’ll pay no fees or commissions, and we are able to close within 10 days!
Call us today at (702) 291-7577 for a free, no-obligation evaluation, or visit us at https://www.gr8housebuyers.com.
[i] https://www.businessinsider.com/mortgage-rates-highest-since-2008-housing-crash-will-raise-more-2022-9
[ii] https://money.yahoo.com/housing-affordability-200916571.html
[iii] https://www.redfin.com/news/real-estate-bidding-wars-july-2022/
[iv] https://www.financialsamurai.com/adjustable-rate-mortgages-as-a-percentage-of-total-loans/
[v] https://www.americanprogress.org/article/2008-housing-crisis/
[vi] https://www.cnbc.com/2020/04/13/coronavirus-why-its-suddenly-much-harder-to-get-a-mortgage-or-even-refinance.html
[vii] https://www.investopedia.com/articles/07/subprime-overview.asp
[viii] https://lasvegassun.com/news/2022/sep/07/las-vegas-valley-home-prices-drop-again-in-august/
[ix] https://www.wsj.com/podcasts/google-news-update/more-homeowners-are-renting-out-their-homes-instead-of-selling-them/
[x] https://www.redfin.com/news/redfin-rental-report-may-2022/
[xi] https://www.cnbc.com/2022/09/27/cities-where-homebuyers-are-backing-out-of-contracts.html
[xii] https://www.marketwatch.com/story/any-doubt-fed-will-raise-rates-by-75-basis-points-next-week-is-gone-after-hot-u-s-inflation-data-11663077077