Last week there were 171 new listings that came on the market in Clark County in a single day. This is great news for buyers as our market has had such a tight inventory for so long. If this trend continues we could see a bit of a softening int he tensions for buyers. I do not foresee prices tumbling at this point, but I do see prices flattening out and maybe even dropping just a tad.
Sellers will not longer be able to expect multiple offers tens of thousands above asking if the inventory settles into a more healthy 3-6 months. A few months back inventory levels were measured in days! With our local median price hovering near $600,000 we could stand to see a a very modest slowing to help keep pace with incomes and the challenges with the high inflation currently infused into the economy.
It will also ease a little pressure in the "bubble" that can carry us through an minor recession that is likely to hit sometime in the next 18 months. Buyers using low downpayment products like VA and FHA should not be afraid to buy in this market, but always remember that low interest loans should be viewed as a longer term prospect. If the market softens you may have to stay in the house for 3-5 years to gain enough equity to get out. Of course if the recession does not come you may be able sell the very next year and come out ahead. It however is not wise to assume the recession will not come, but rather assume that it will.
Buying a house should be a long term investment and remember it is one of the few investments that provide a mandatory commodity of shelter, shelter that you otherwise have to pay rent and make someone else rich.