Appraisal Articles 2019 Free Appraisal Articles for Appraisers and the Public
Just when you thought you had escaped the nightmare, they pull you back in!
If the housing market in California is an indication of the future of the housing market then you had better start digging out your old reports on distressed sales. Many are predicting a downturn in the real estate market cycle that could cause a lot of pain.
When you think about California, New York, New Jersey and other states where demand has been hit by the interest deductibility limits it seems only reasonable that fewer buyers want to jump into those markets. You have to have a great deal of money, and want to give it away, to purchase a home in a state that has outrageously high taxes that are no longer fully deductible. For those who have been avoiding those taxes for a long time things are changing.
Those tracking the downturn are suggesting that it’s not going to be limited to high tax states. They believe that the downturn that they are seeing in California and New York is broader than we imagine and say that it will affect other areas.
It’s difficult to imagine that a no income tax state like Nevada with its nearly nil housing supply will see anything like the carnage that is being suggested for California. If you are a buyer in the Nevada housing market today (August, 2018) the loss of over 3,000 homes from the offering market is palpable. There isn’t a frenzy to buy homes but there is still a stiff competition.
We have not gone from a 30 to 60 day marketing time to a 1 plus year marketing time. In fact Greater Las Vegas Association of Realtors data indicated today that as of July, 2018 we have hit a record breaking 12-day low average “days on market” (DOM) and a new high “median list price” of home at $ 279,000. It doesn’t sound like or look like a Nevada downturn to me, not based on our statistics, it looks more like a Nevada housing boom!
That may be the reason that I am seeing so many sites in different stages of development here in Henderson, Nevada. Site development and full throttle building is what’s happening and no one is taking classes on the coming crash unless they know something that the rest of us don’t.
It may be that many of those Californian’s and New Yorker’s who can escape their nasty real estate markets are moving here. Our housing prices are low and property taxes are also relatively low. When compared to places like CA, NY and NJ they (our property tax rates) are in fact ridiculously low.
Nevada has its problems, like any other place, but extraordinarily high housing prices and a depress market are not part of them. Our cost of living is reasonable and in many ways we are moving in the right direction.
For more appraisal information contact Glenn J. Rigdon MA, MRICS, IFAS, ASA is a Las Vegas / Henderson Nevada based appraiser who can be contacted via email or via his business website known as Appraiser Las Vegas (http://www.appraiserlasvegas.com), or http://www.horizonvillageappraisal.com, or you can also click on “Contact Us” on the home page of this website or visit my public profile at LinkedIn at http://www.linkedin.com/pub/glenn-rigdon-ma-mrics-asa/1a/30b/879/
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