Almost daily, I am asked if I foresee another Las Vegas market crash. Partly responsible for this fear is that Las Vegas was one of the hardest-hit cities during the 2007 destruction of the real estate market.
Nearly everyone I knew was affected. My family also found itself caught up in this tidal wave and now has a short sale on our once pristine credit report. We considered it almost criminal not to pay our bills and almost ended up bankrupt because it took us some time for the mindset shift to take hold. We paying two mortgages for a year before we conceded and short sold the first home we’d ever bought.
Here’s the rub, I didn’t have a trusted advisor to tell me the consequences of that action. There were other options that we could have tried. But there was no advisor, just noise!
I entered the real estate industry to quiet the noise. To be a trusted advisor, a sounding board, and create a plan. To help you navigate the real estate market, protect your investment, and have someone to turn to that, you can ask questions without fear of judgment.
SO here’s the reason you’re reading this article. Is the Las Vegas housing market going to crash again?
I understand the concern, given the current state of affairs. Never in my life did I believe that I would be living through a worldwide pandemic. Global pandemics are something you only read about in history books. That kind of stuff happened in the olden days.
SO I get it! It feels as if we have just recovered from the last downturn in the real estate market.
My answer is two-fold.
Yes, we might see some short sales or even foreclosures in the next few years. This time the reason is distinctly different; furloughs, layoffs, casinos, and entertainment not fully reopening will contribute to this following two to three-year course correction. However, as this is happening across the country, I suspect that the banks learned how to help current homeowners from the last time more effectively.
Course correct? Yes! Crash? I do not see that happening. See, after the last blow to our economy came, the federal government decided to put in place protections for consumers. It’s called the Dodd-Frank Act. This act was put into place to protect consumers from predatory lending and mortgage practices by banks. It’s a start!
Although some protections are in place, you still need a trusted advisor in the real estate industry with their finger on the pulse.
While these guidelines are not complete protection, they are essential:
Considerations before you buy:
- Do you have a trusted real estate advisor? If not, find one!
- Do you know if you can qualify to buy? Get-preapproved with a lender!
- Do you know all the costs associated with purchasing a home? Make sure you understand ALL costs!
- Does your payment include HOA, tax & insurance? Are you comfortable with the total amount?
Remember, this is the bare minimum for you to ask yourself before you start to look for a home to purchase. Consider this your homework.
Considerations before you sell:
- Do you have a trusted real estate advisor? If not, get one!
- Do you know what your home should sell for? Hint, it’s not your Zestimate!
- Do you know the payoff amount of your mortgage? It matters!
- Does your NET(money in the bank after costs) after selling allow you to accomplish your next goal? If not, should you sell it?
- Have you figured out your next goal? Let’s talk about goals!
Read: Preparing your house to sell
With me, as with your trusted real estate advisor, we will discuss all these questions and more on your first or second discovery call.
All this to say, I do not see a crash coming.
Our real estate market is strong.
However, if your circumstances mean that you need guidance through a short sale scenario or you find yourself on the brink of foreclosure, I am here to help.
If you are looking to buy a home, you may also enjoy: Should I buy a home during a pandemic?