The Las Vegas real estate market is hot. According to Zillow prices are going up and the number of houses on the market is heading down.
A new Zillow report shows there are 11.8% fewer homes for-sale in the Las Vegas area this year in the middle-tier price range, that's around the $200,000 to $300,000 range.
"June is going to be incredibly hot, we're expecting to sell about 3,500 homes in Las Vegas," explained Realtor Jillian Batchelor with the Batchelor Group with Realty One Group.
For buyers, experts say you'll want to be pre approved first and expect to look at 10 to 15 homes and make 3 to five offers. Expect to pay something close to the listing price, possible even a little more.
"You are easily going to have to offer 95 percent of list price if the home is in good condition to upwards of 105 percent of list price and that's not uncommon," said Batchelor.
Sellers are in luck, experts say this is a great time to sell, especially if you have a medium priced home between $200,000 and $300,00. You can expect to get multiple offers and more money.
"When you get a multiple offer situation you can come up a minimum of $10,000 but really based on the sales price I would say the good rule of thumb is 2% to 5%," said Batchelor.
One of the medium priced homes Batchelor has for sale in one of the most competitive areas got seven offers in the first two weeks and it's expected to close right around the asking price.
"That's pretty common for what buyers are going to see when they are looking in this price range, they are going to see a lot of activity, a lot of competition and they are going to need to come in strong," said Batchelor.
Home prices are up but in Batchelors opinion, this isn't impacting renters. She says rent has stayed pretty much the same over the last five years.
Here are the topline inventory stats for the Las Vegas Metropolitan area according to Zillow:
* Home values rose 8.8% over past year to a median home value of $203,700.
* Overall, there are 2.1% fewer homes for sale than a year ago, however:
o Bottom-tier inventory is down 9.3%.
o Middle-tier inventory is down 11.8%.
o Top-tier inventory is up 9.9%.
o Condo inventory is down 3.4%.
* What does this mean? Low inventory, wage growth higher than expected, and low mortgage rates are some of the factors causing home values to rise faster than experts predicted. Entry-level homes are seeing the greatest inventory shortage, while shoppers looking for condos and homes in the top-third of the market will have more options.
Hot (or competitive) Zip Codes:
o Inventory is down 24.3% from this time last year
o Median home value: $272,800
o Home values rose 6.5% this past year
o Inventory is down 21.3%
o Median home value: $213,200
o YoY appreciation: 7.3%
o Inventory is down 16.8%
o Median home value: $264,700
o YoY appreciation: 3.8%
Less Competitive Zip Codes:
o Inventory is up 48.8% from this time last year
o Median home value: $153,400
o YoY appreciation: 4.6%
o Inventory: up 24%
o Median home value: $237,200
o YoY appreciation: 5.2%
o Inventory: up 23.9%
o Median home value: $285,700
o YoY appreciation: 3%
How to Score Your Dream Home in a Seller's Market - Zillow's Top 5 Tips:
1. Find an agent with a winning track record.
Read reviews on local agents and find someone who has a proven track record of winning bidding wars. You'll need someone in your corner, so it pays to spend the time finding someone who knows how to leverage escalation clauses and negotiate fast in competitive markets.
2. Court a lender and get pre-approved.
Compare and meet with your lender early and get preapproved for a loan - even before you begin seriously shopping for your dream home. Having the pre-approval letter in hand can save valuable time and avoid a last minute scramble when you find a home you want to quickly put an offer on.
3. Request to pre-inspect.
Ask to conduct a pre-inspection before submitting an offer. You risk losing a few hundred dollars if you don't end up wanting the house; but if you do move forward, you'll be able to submit an offer not contingent on home inspections, creating a strong advantage over other buyers.
4. Come in fast & strong.
Be the first offer, and don't insult. This is not the time to lowball, and nothing turns a seller off more than someone undervaluing their prized possession. Come in either at or just slightly below asking, so the seller knows you're serious.
5. Search pre-market inventory.
Many real estate sites, including Zillow, allow buyers to access and search pre-market inventory - or homes that aren't yet listed for sale or on the MLS. By accessing this data early, home shoppers can get a leg up on the competition and increase their chances of being first to bring an offer to the table.