Friday, Oct. 25, 2019 | noon
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The “right” time to buy a home is contingent upon multiple factors, but for many, the current market in Las Vegas—a growing local economy with lower interest rates—has created an ideal purchasing environment. Though the ultimate choice depends on a person’s financial situation, here’s a look at a few outside factors that suggest now is a good time to buy a home or condo.
Market conditions
In a July statement, Janet Carpenter, president of the Greater Las Vegas Association of Realtors, said the local housing market hasn’t been this stable for nearly 20 years, citing the gradual appreciation rate of home prices as a key indicator of stability. GLVAR’s August report states that the market has returned to “normalcy” and the slow growth will be sustainable moving forward.
While home values are still lower than those before the crash, prices are gradually working their way up to the all-time high reported in 2006. This is significant for two reasons: the slow and steady rise indicates a healthy market, and approaching the all-time high benchmark means buyers who were underwater after the recession may finally be breaking even. The Southern Nevada economy is also growing, as diverse industries and businesses of all sizes put down roots in the Valley. Nevada remains a top state for inbound moves as cost-of-living remains considerably lower here than in many other metropolitan markets of its size.
Interest rates
The Federal Reserve cut interest rates by 25 basis points in July and September, bringing them to a new target range of 1.75% to 2%. While the Fed does not directly control mortgage rates, the policies influence investor demand within stock and bond markets, which can affect home loan rates. According to mortgage buyer Freddie Mac, the average rate on a 30-year-fixed-rate mortgage was 3.56% as of September 9, which is a near-historic low. Last year, it was 4.6%.
Developing personal wealth
Homeownership continues to be one of the best ways to accumulate personal wealth and is one of the most powerful indicators of a higher net worth. Families that owned their home had an average net worth of $231,400, whereas renters had an average net worth of $5,200, according to the 2016 Survey of Consumer Finances.
