The Las Vegas valley has a balanced real estate market for the first time in years.

It’s one of the oldest laws in history – the “Law of Supply and Demand”.  And in residential real estate, there are some very specific measurements, that tell you most of what you need to know about any given market.

Take any specific territory (one zip code, or several), then we refer to “supply” as the number of available houses on the market today, and we call the demand, the number of houses that sold in the previous 30 days. Next, divide the former, by the latter, and that gives us “months of inventory”.  (to be clear, if there are 400 houses on the market today, and 100 houses have sold in the past 30 days, 400/100=4 “months of inventory”). What we have learned in modern real estate history, is that when “months of inventory” is less than 4, seller’s are pretty much “in charge” of the negotiations and the buyer is just grateful for the opportunity to (hopefully) buy.  Under these circumstances, we regularly see properties receive multiple offers, and buyers are often prone to paying more than the appraised value for a house. That’s the way it has been in the Las Vegas Valley for quite some time. I, personally started tracking inventory levels in September of 2012, when inventory was a paltry 1.34 months of inventory. I did this because I had learned that people who tracked these kind of numbers, saw what was coming, long before the typical consumer. A lot of people were blindsided in Las Vegas in 2006, and I did not want that to happen to me or my clients in the future. We just recently broke the 4 barrier and today we have 4.12 months of inventory.

What is next? That depends. Of course, historically less houses sell in the winter months, however, last December, we never broke the “4” mark; and inventory levels ranged between 3.29-3.38 months. What I hope this means is that we will continue for a long time to see “months of inventory” between 4-6 in our valley? What happens after 6?, well then the buyer’s kind of become “in charge” and the seller’s are just happy to have someone (hopefully) buy their property.

Would you like to see the supply of homes available in 89135 (Summerlin South)? 43 residential properties sold last month, and this link will show you what is what is available right now;
http://goo.gl/L8uwhb

(The Las Vegas valley is considered balanced, as a whole, however sellers are still “in charge” in this zip code)

Is it your first time? Because if it is, it just got easier! (Oh yeah, and if it’s not your first time, we can pretend)

Today Fannie Mae, a government entity that helps ensure that Americans can become homeowners, announced an improved option for qualified first-time home buyers, which allows them to buy with as little as a 3% down payment. On a $150,000 home purchase, that is less than $5,000 down and with today’s interest rates, your monthly payment would be around $1,000 (including Principal, Interest, Taxes and Insurance [PITI]). You still have to meet their standards of income and credit, and really, that’s just because they want you to be able to keep the home that you buy.

Two important things to remember; 1. A “first-time homebuyer” (in their eyes) is someone who has not had a mortgage in the past two years. (pretty cool, huh?) 2. The down payment can be a gift from a family member.

You can read more about the announcement here on Fannie Mae’s web site;
http://www.fanniemae.com/portal/about-us/media/corporate-news/2014/6203.html

Would you like to search for your first home? Click the link below to search for single family homes between $125,000 and $175,000 in Southwest Las Vegas
http://goo.gl/oG0Fe6

Would you like to find out if you qualify for this 3% down program?
https://www.my-loan-application.com/SecureLoanApp_Step1.cfm?org=2079&cli=18192