Henderson Nevada Homes are a very risky Real Estate Market for at least the next 5 years… which we will explain in this article. One should view a Home Purchase as an investment, and as such one should understand how the economy really is not how they want it to be. Economic Optimism makes great headlines but will send you to poor house if you don't enter the Henderson Real Estate market from an objective viewpoint.
Beyond 5 years it's anyone's guess what is going to happen but right now Las Vegas/Henderson is declining and will probably never be what it was in the early 2000's and that's probably a very good thing. This Real Estate market downturn is more than a bursting bubble, this is more than a financial correction, the current downturn is a wake up call to the local citizens to stop believing the hype and start acting responsibly.
No Risk No Reward… this is how the financial markets operate and this is how the Real Estate Market has traditionally operated. With news of record low mortgage interest rates one might think that now is the time to buy. Of course you'll need qualifying income to make the purchase, but there is more to consider than just the cost of financing being so low.
If you buy a home for $150,000 this year and it drops in value another 10% it doesn't matter that the rate was low because you lost money! Of course people need a place to live and with rising rents you are actually choosing which housing option – rent/buy affords you the smallest loss. You can expect even more Henderson NV Homes on the market in the next few years.
Yes there are select neighborhoods that are holding their value… neighborhoods in the very best locations with the highest incomes within “affordable” ranges. People want to live in nice neighborhoods, have good schools, and well kept properties… and are willing to pay a premium. But outside of these select Henderson Neighborhoods property values are still declining.
The real question is will the market continue to decline or has it reached it has reached bottom. If you can answer this question definitively then now is either a great time to sell or to buy. Perhaps now is less of a great time to sell… more correctly a great time to get out before you lose even more. But will you be able to find a buyer for your property?
Let's talk about the Henderson Nevada Home market and in more general terms the Las Vegas Home market in general. Realtors are continually telling people it's a “Great Time to Buy” because the market is down and interest rates are so low. Realtors are always going to tell you it's a great time to buy because their livelihoods depend on it. Behind the scenes most honest Realtors are as alarmed and concerned as you are
The Henderson housing market is down for a reason – the boom of explosive growth overvalued Las Vegas Property by many multiples. There was simply no solid financial reason to build so fast and so recklessly. But this downward spiral is much more than a market correction. The sad reality is the jobs that created the boom are gone. And without incomes to make payments the housing industry will continue to collapse. People simply do not have the money to sustain payments. And with new financial restrictions loans are going to be even more difficult to come by.
Henderson for those who are not familiar with Las Vegas is essentially a suburb that extends across the south valley. Henderson is desirable due to it's location, and the “newness” of the area. Henderson has close proximity to the Las Vegas Strip, Lake Mead and suburban shopping. Everybody wants into the “new” part of town because it's new. But there is a downside to paying for entry… and that's the penalty for perceived value. The homes in Henderson are not nicer than the homes out on the Southwest Side of town or the Far Northwest corner… they are just in a better location. And in the Real Estate Business Location, Location, Location is the mantra for value.
Consider these facts before you decide if Henderson is now a good opportunity for you.
Las Vegas has 14.5% Official Unemployment right now and the unofficial employment is the real scary number. What happens when Federally backed long term benefits expire? Can we expect an exodus from the City? Las Vegas is the #1 City in the country for foreclosures. Foreclosure properties lower the value of surrounding properties because banks typically do not improve or even maintain the properties. Thus you can expect most areas in Henderson to decline in value as foreclosures increase. Foreclosures also increase the likelihood of squatters and crime.
Now if you look at the primary employment opportunities in the Henderson Area you'll see they are based on service industries. But in a country with record unemployment the prospects of complete recovery are years down the road.
Service employees are essential to Las Vegas and Henderson but it's the tourists dollars coming from outside the State and especially California that create these service jobs. California's Economy is the 8th largest in the World and in the toilet with little chance of a quick recovery. Without tourism there is no income to sustain the jobs needed to make the payments on property. Our country is based on a perpetual debt model that has not just hiccuped this time around it's collapsed under it's own weight.
With $13 Trillion in National Debt and explosive Federal Government growth (25% of GDP and expected to explode to more than 50% by 2020) you have to ask yourself where are the jobs going to come from? One thing for certain is that taxes are going to rise and incomes are going to continue to decline.
It's Doom and Gloom for sellers for sure, but perhaps not for buyers with financial stability. But is now the time to buy or should one wait? In our view one should wait. We just don't see a real recovery based on Washington DC behaviors. If you increase social programs, military spending and flood the market with printed and borrowed currency you can not expect a recovery. People who look big picture at the Economy are not buying into the Federal Governments economic predictions. A “Jobless Recovery” is not a recovery. Real people need jobs to revive the housing market and that is not going to happen soon… if at all. Your best bet is to get out and if you are looking to buy stay in the under $200,000 range and plan on living in your home a long time. Now is not a great time to buy or sell so keep perspective and BE CAREFUL!
Kay is a writer and Henderson NV resident since 1998 and has watched the boom and decline of the Henderson Nevada Suburbs. Her unique insights offer valid questions whether one should consider purchasing area Real Estate at this time. To learn more please visit Henderson NV Homes and Relocation