Archive for December 27th, 2012

Reno and Las Vegas Strong Bets for Real Estate Investors

Thursday, December 27th, 2012

Investing in Reno and Las Vegas real estate properties is one way to ensure that money ends up in your pocket.  Prices are still very low in these two cites after they experienced a deep plunge during the economic bust, but evidence suggests that a strong rebound is currently in progress.   Multiple Listing Services (or MLS) data shows the following evidence of strong growth:

Prices are up

In Las Vegas there was a noticeable 12.4% increase in home prices during October, compared to the previous year.   Reno, on the other hand, showed an increase of 11. 7% compared to the same month of the previous year.  Both cities showed indications that they were improving much faster than other markets in the nation.  Single family homes in Las Vegas went up by 11.9% in October compared to September’s sales.  Townhomes and condominium units rose by 5.7%.

Tightening of inventories

Both markets are seeing significantly reduced inventories.  Reno’s inventory decreased by almost 30%, while in Las Vegas, inventory went down by 24.4% over the last 12 months.

Declining Foreclosure rates

Tough new foreclosure rules that are now being implemented in Nevada helped to reduce both city’s foreclosure rates.  Before the new foreclosure rules, foreclosure rates were at one for every 39 homes, one of the steepest in the country.  Now however, the foreclosure rate has much improved and currently stands one for every 139 houses.

Lowering of Unemployment

Unemployment rates are still a problem for both cities, but as the economy improves in these areas more jobs will almost certainly be created.  And while both the economy and job growth are still a bit on the shaky side, several factors predict that these two cities are set for a stable rebound, meaning it would be a smart decision to make your move in the real estate market now.