Archive for December 28th, 2012

Rising to the Top of the US Seller’s Markets is Sin City Las Vegas

Friday, December 28th, 2012

Las Vegas was one of the cities hit hardest by the housing bust some years back.  But now its rebound has been so strong that it’s rising to be one of the top sellers’ markets in the country.  Local and foreign investors alike are eagerly taking advantage of cut-priced homes and turning them into affordable rentals.

The best performing states in the US at the moment include Washington State, Arizona, California, and Nevada – the very same regions that were also the hardest hit.

According to Stan Humphries, Zillow’s chief economist, investors are taking advantage of low prices and the reduced interest rates of distressed homes in these states.  Inventory levels there have reduced rapidly due to high sales, and this has helped to improve the prices of homes.

Zillow said that its rankings were based on different sets of data like sales prices against asking prices, percentage of homes in the market marked with price cuts, and number of days listed on the market.

Homes that are listed in the sellers’ markets for a shorter length of time have less chances of seeing their prices slashed, hence their sales prices become nearer or even greater than their previous listing price.  Zillow also conducted a survey of the top ten buyers markets.  These refer to those markets where homes lingered in the marketplace for the longest period of time, and consequently saw prices are cut more frequently.  The survey showed that Chicago was a top the list of the buyers’ markets succeeded by New York, Cincinnati, Philadelphia, and Cleveland.

For the coming year, 2013, Las Vegas is expected to see a small rise in foreclosures in the first quarter but not nearly as high as the levels of 2010-2011. Also, investors are expected to see as much as a12% return of investment in the early quarter.  Experts say that prices in Las Vegas will continue to rise in the following 6-12 months, although it is expected to remain a tempting one for investors throughout the year.