Forbes claims "We've hit the bottom of the real estate market"

The Las Vegas Housing Market is seeing a recovery faster than anticipated. Forbes.com released an article recently touting the bottom of the real estate market.

I saw this article, and being the optimist that I am, I wanted to share it with all of my clients. However, not all of my clients are as optimistic as I am and I'm interested in seeing what your thoughts of our market. I usually take what people say with a grain of salt because the media is conditioning everyone's mind to spout gloom and doom, but I do listen to what people think. I can give you my perspective with my current clients, and what I am seeing out in the field everyday.

Forbes.com had an article on the September 18th, 2009 full article that touted "We've hit the bottom!" I was very excited to read the article and learn more about their opinions on the subject. Here are a couple of excerts that caught my attention:

"The percent of homes on the market with price reductions is a really insightful indicator of organic levels of demand," says Michael Simonsen, chief executive of Altos Research. "As this number is dropping, there's improving demand at current prices."

Over 60% of our market is still distressed homes, either foreclosures or short sales. But I am noticing that even if a property is listed below recent comparable sales, 70% of them actually sold higher than list price. Yes folks, our available inventory is forcing multiple offers which is driving prices UP! At least driving prices above the listed price.

"The news is best in Las Vegas, Phoenix and Miami, markets that saw the steepest price inflation a couple of years ago. In these places, the number of cut-price homes is down 24, 18 and 12 percentage points since Jan. 1, respectively. Although the numbers are still high--40% of Phoenix homes have been discounted, compared to single-digit numbers in previous years--the dramatic reduction in price cuts here is a sign that buyer demand is rising to meet the excess of supply that was caused by irrationally exuberant building practices earlier in the decade."

Vegas is probably the epitomy of over indulgence, and we are now paying the price for that. But, as this article stated, buyer demand is now eating up a huge supply of these over built areas and inventory has been steadily declining since January 2009. I just wrote my 12th offer for a client who is looking to purchase his first home. The competition is stiff to get into property that is so affordable compared to past prices.

WHAT DO YOU THINK??

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