I’d like to start this month’s publisher letter by talking about free money. If you were eligible for a PPP loan, you may have more relief coming your way in the form of the Employee Retention Credit. This information will be extremely beneficial for those who can use it. Our friend Krystal can run the numbers for you and file for the credit with the IRS while you keep your regular CPA. Just call Krystal Walford at 702.255.2330 to get started.
Now for the question on everyone’s mind: Is the real estate market headed toward a crash? We don’t have a crystal ball, but in our professional opinion, selling conditions for homeowners will be more favorable this year than next. Along with record-low interest rates, there were trillions of stimulus dollars created in the last two years—rocket fuel that has propelled Las Vegas home prices to new heights. However, stimulus payments and Fed bond buying are winding down. Interest rates for a 30-year mortgage, which managed to break below 3%, are now over 5% in most cases and are poised to go even higher this year. The rocket fuel is running out, but the city is still a favorable place to live, particularly for Californians because we have lower real estate prices and no state tax. If you’ve been thinking about selling, we recommend that you do it this year.
In May, guard-gated single-family home inventory was up month-over-month and year-over-year, while closed sales were down. However, when you look at homes priced over $1,000,000 (including properties outside of guard-gated communities), there were 162 closed sales in May 2022 compared to 140 in May 2021. Overall, sales are actually still up in the luxury market.
The Absorption Rate/Inventory graph shows that guard-gated homes priced $500,000 to $1,500,000 and $2,000,000 to $2,500,000 make up the strongest market segments for sellers—with a general supply of three months. However, the market is still favorable for homes at all price points. If you’re ready to sell, we’re here to help.