Biggest Risk In 2006
There is a general slow down in the real estate market. Sales are slightly down but the home prices continue their upward march. The slowdown could be result of the increase in mortgage prices and investors pulling back from the real estate market.The biggest risk to the real estate market is from the investors. When the market was hot many speculative investors used some creative financing options and interest only loans to quickly finance their purchases. Now with the mortgage rates going up they are finding themselves in a bind.
A mass exodus or a panic reaction from these investors can see the market flooded with resale homes, while a more steady and clear-headed exit will leave time for the market to adjust and march ahead. But what a speculator will do when faced with a tough situation is moot point. It is pretty much an unknown territory and one strewn with landmines.
Despite everything the Las Vegas real estate market has held steady. Let's hope it continues that way.
0 Comments:
Post a Comment
<< Las Vegas Homes News