So it's been awhile since I've written an update on the Las Vegas real estate market. January seems like a fine time to get back at it.

Just a quick note on me, I've been very busy closing out 2009. The market has been active, but it seems that there are more challenges in closing properties than ever before. My feeling is that this is primarily due to tightening lender scrutiny and unique issues posed by the foreclosure beast. These challenges should not deter you if you have a quality, full time lender and have faith in your Realtor to help you navigate these uncharted waters. What I mean by "faith in your Realtor" is that you are using someone that is full time, qualified and competent in the current market.

The current market is/has been quite stable for most of 2009 both from a pricing and supply standpoint. The graph below shows single family residence days of supply by price range for the last 12 months. As you can see, the market (from about $700K and under) has been quite stable since about mid April.

*****Okay, so this forum will apparently not allow the graphic to post, so email me and I will happily send the graph to you***************

One factor that greatly affects the days of supply (and your home shopping experience) is the demand. We have the highest demand for properties in the sub $300K price range which is to be expected. With the banks putting a freeze on the release of new listings for the holidays, we would expect to see the days of supply drop, we haven't seen this happen. The reason we haven't seen this happen is due to a corresponding drop in demand during the same time frame. Simply put, not as many people are shopping for homes during the holidays.

During the months leading into the holiday season we were in a VERY competitive marketplace for the buyer. Typically the buyer was in a serious multiple offer situation which meant offers above list to even get consideration for your offer. This led to an uncertainty when the appraisal was performed and often a secondary negotiation period to attempt to come to terms with the appraisal. All of this is stressful on the buyer leaving the outcome of the purchase in jeopardy.

During the last month-and-a-half or so of 2009, I was seeing much less competition. This translated into more accepted offers much closer to current market value which resulted in more buyers getting the home they wanted at a more reasonable price.

What we can expect in the months to come is an increase in buyers looking for new homes, which I believe will take us back into that same scenario - doable, but not fun! Factors affecting this are of course the seasonal increase we expect to see as well as the banks' rate of listing new foreclosures into the market. Add to this mix the government's extension of the tax credit, and with April 15th approaching, I suspect this will become more important in the buyer's mind. The increase of buyer activity ahead should be fairly normal and I would expect the banks to respond accordingly keeping pricing fairly stable. What I don't expect to continue to be stable is the level of competition for those properties.

To boil this down, my opinion is that if you are considering a real estate purchase in the near future, do yourself a favor and get going sooner rather than later. It may mean the difference in getting the home you want instead of settling for the one you can get.

If you are looking to make a move and need a full time Realtor to help or just have questions you would like to discuss, feel free to call me - Scott Meservey (702)496-4710 or send me an email at scottmeservey@702properties.com.