Looking for some advice or perspectives on the current housing market in Las Vegas. For context, we have a dual income of $180k, no kids. Here’s our situation:
We currently own a starter home that we purchased during the recession years for ~$200k. The monthly payment is super low (about $1,000), so bills and spending don’t really stress us out much right now. We’ve been updating the house gradually over time, and while it’s perfectly livable, we’re starting to feel like we’d like a bit more space and a slightly bigger yard.
However, to even find something that feels like an upgrade from our current home, the price point would be around $650k which is baffling. If we sold our house and pocketed roughly $200k for a down payment, the new mortgage payment would still be around $3,700. Otherwise, it’s closer to $4,700 with the money we have set aside right now (we are still saving as we figure this out). That’s such a tough number to stomach! And that’s not even considering the changes in bills, surprise maintenance, etc. We could make it work but we would have to be super strict with our budget and cutting out a lot to make sure we’re okay.
What makes it even harder is how much Las Vegas has grown and how investors have bought up so many properties. It feels almost hopeless at times, like the market is completely stacked against regular buyers. The pressure is immense, and we’re stuck trying to figure out what to do. It sucks how we’re constantly having regrets on not being ready just a few years ago before everything blew up.
Is this just the new norm for Las Vegas? We’re debating whether it’s worth staying put, continuing to update our current smaller home, and enjoying the financial flexibility, or if biting the bullet for the higher payment makes sense in the long run. I keep hearing how it’s better to buy now and refinance later but who knows when interest rates actually will drop. And again, such a high mortgage payment is still hard to accept.
I’d love to hear from anyone who’s been in a similar situation or has insights on the Vegas housing market right now. Thanks!
You at least have one step up from a new “regular buyer”. You have a home with a $1k mortgage (!!) payment and 200k equity for the new one. New buyers don’t have either.
So the answer is:
- stay put and learn to appreciate the starter home. take that extra 3k+ you would spend on a new house and take a new vacation every month.
- save more money and/or make more money
- decide if the bigger house is worth the extra money, and then go for it
@Ashby
Yep very clear on the options and good point on being a step up. I’m hoping to hear more about what others are experiencing in the Vegas market since we don’t know anyone right now that’s looking to buy so we’re all baffled at how crazy everything is.
Henderson checking in. I bought a townhouse in 2018 just before everything blew up. I refinanced in 21’ and got that sweet sweet 3 ish % rate. Our mortgage is $1200.
We have a small baby, older one in extracurriculars, two dogs and we have outgrown our home. Looking what’s out there we would be in the 650ish range as well.
Even with the 100k or so as equity, a new mortgage with a 6-7% rate is far beyond our means. So, we have a new 5 year plan. Payoff the new ac unit we had to install, payoff the cars and watch the market. I personally feel the rates are going nowhere, especially with the new administration about to Fuck it up, again.
I wish I was here in 2008 when the housing absolutely bottomed out and bought a huge house with a pool. Had a friend just sell and move to MN, they did what I just described, let’s just say the house they bought in MN, cash.
Cody said: @Orion
Fuck it up again? I got my 2.5% under that fucked up regime!
Thanks to the Fed dropping interest rates to near zero because of the pandemic.
Got mine pre-pandemic in July 2019 but hey, it was still under Trump no matter right? We should all hope his staff can influence the rates back down for all our brothers and sisters!
@Cody
Unless you bought points that was not an off the shelf rate. July 2019 rates were like 3.6% or more and the 15 year for credit union was like 3.4%.
Orion said: @Cody
Unless you bought points that was not an off the shelf rate. July 2019 rates were like 3.6% or more and the 15 year for credit union was like 3.4%.
Nope… 30yr VA loan… Had some good connections… Most would love that 3.6 though!
@Cody
30 yr VA in 2019 was 3.9% ish. Still not 2.5%. As mentioned earlier unless you bought points or something incredible happened you did not get 2.5% in 2019.
Hell, just about a month ago, you said you bought your home for $480k at 4%. Refi in 21’ (shocker) for 2.5%.
@Orion
What is it? Sounds like you are a Trump h8ting stalker… Based on the day they can be both or either. Both examples are correct based on the day and issue. Come on man…
Cody said: @Orion
What is it? Sounds like you are a Trump h8ting stalker… Based on the day they can be both or either. Both examples are correct based on the day and issue. Come on man…
@Orion
Not sure what you mean but both my previous statement for that house and the one I’m currently living in are both correct. I think I mentioned the 2.5% in ‘19 in another post 26 days ago. Reality is not what it always seems to be.
@Orion
As much as it sucks, it’s a bit comforting to hear others are also in the same situation! Probably going to look at doing something similar and figure out a long term plan the more we talk about it.
My wife and I sold our starter home we built in 2009 due to bad neighbors in 2021. We built a new home. We absolutely love our new home and I don’t regret it. But I do miss the $400 mortgage.
Teal said:
My wife and I sold our starter home we built in 2009 due to bad neighbors in 2021. We built a new home. We absolutely love our new home and I don’t regret it. But I do miss the $400 mortgage.
That’s awesome! Wish we got in that window before rates got high.
…possibly dumb question, but would it make sense to sell now and rent for a bit? Isn’t Vegas like…possibly going to run out of water in the next 5-10 years? Would suck to get stuck holding property if that happens.
@Ainsley
Not a dumb question! Our mortgage is wayyy cheaper than rent prices right now, so it makes more sense financially to stay where we are over renting for the moment. As for the water issue, a lot of people think Vegas is screwed when it comes to water and I used to as well, but it’s not entirely true. Doesn’t mean it can’t happen! Vegas is one of the best cities when it comes to managing water and has systems built to help with recycling water and reserves. It’s not just a Vegas problem though. Other places like Colorado, Arizona, California, a lot of Tribal Nations rely on the same water source so if we’re screwed, so are a lot of other places!
I’m buying a home in Henderson and your numbers are spot on. I don’t think it’s a great investment strictly from a financial standpoint considering the prices and interest rates but it’s important to me to give my son a “home, home” if that makes sense. I plan to stay in the home for a very long time and I feel strongly that Vegas will continue to boom with the movie studios planned, a major league baseball team in the next year or so and almost surely an NBA team after that. Having said that, I don’t see home prices going down.
I rent now and have a child, so we are not in the same position but thought I’d share my thoughts anyway.
Reality is not what it always seems to be.