Some Real Estate experts have opened discussions and speculations about the viability of investing in real estate, particularly in Clark County, Nevada. Concerns about a potential national housing crash have led to widespread debate, fueled by various online sources, including social media and YouTube videos, which often highlight the possibility of a downturn in the housing market. There is no reason to believe that Nevada (especially Clark County) is due a housing crash anytime soon. To prove this, let’s take a look at the numbers.
Firstly, one of the main indications of a housing crash is high housing inventory. This increase in inventory often leads to lower prices. When there is a high supply, demand will naturally decrease alongside the price. A large number of houses for sale means that there is no rush for buyers to buy their houses, which often leads to sellers reducing the prices of their homes just for them to sell. According to Realtor.com, Clark County lists roughly 11,500 homes, while Nevada lists almost 20,000 homes for sale. If we compare this to a different state like Texas which lists around 260,000 homes, then we can see that the housing inventory in Nevada has risen, but does not have an imbalance of too many homes on the market.
The housing for Nevada is far from creating a surplus, but this does not mean that the current inventory is unable to keep up with the demand. In fact, the housing inventory of Clark County saw an increase of approximately 10% last year.This rise in inventory is after 2 years of below normal market inventory. Therefore, experts predict that a housing crash for Nevada is less likely to occur in the near future.
Other states are in a more precarious situation. If we look at the state of Texas, they list around 260,000 homes for sale. Other regions, like the American South have also reported a housing inventory of around 300,000 units, which is significantly more than the housing bubble that happened last 2006. It is possible that this area is in a housing Bubble now, and could cause a very dangerous crash in their real estate markets.
Clark County is currently experiencing a high level of price reductions with its current inventory. This means that the current demand is slowing down, however this does not mean that sellers are losing out. If we look at the day-to-day data, there is an observable trend. The number of sellers reducing their prices, are almost equalling the number of homes being bought. We can see that their ratio is approaching one, meaning that the sellers who are willing to be flexible are showing more sales in the end. Current sellers are taking advantage of what may be the past peak of the market, which appears to have occurred already.
Clark County is one of the perfect places for aspiring homeowners to move into. Nevada is keeping a steady pace of demand and slow rising inventory levels, after over the last few years of far below average inventory levels for the Clark County area. This can be attributed to Nevada’s popularity as a relocation state. There is a continued rise of residents from nearby states like California, moving into Nevada. As more people migrate into the area, our local market keeps a healthy pace and I feel we are in a healthy market correction currently. If you want to learn more about the beautiful communities of Clark County, and as to why the people who visit want to stay, and those that stayed don’t want to leave, visit the Explore page of the Dulcie Crawford Group website.
In conclusion, Clark County is not due a housing crisis anytime soon. If anything, they’re in a better position relative to other states in the country when it comes to their market inventories keeping up with their supply and demand. The perfect time to buy and invest in real estate is now, as we have more inventory available for buyers to choose from. Sellers are also motivated to negotiate and pay closing costs, and may reduce their prices to get sold quickly. New home builders are offering huge interest rate buydowns that currently allow aspiring homeowners to purchase in the desired 5% interest range.
Dulcie Crawford is a native Nevadan, born and raised in Las Vegas. Dulcie stays current with market conditions so she can assist you in making informed decisions. A senior Realtor with Signature Real Estate Group, she has sold over 1,200 homes since 1998. You are assured a professional experience when buying or selling Real Estate with The Dulcie Crawford Group.
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