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MODERN FAMILY “For families unsure of what’s coming in the future, it still may not be a good time to buy a home. You may want to still look at leasing.” LAS VEGAS HOUSING 51,124 12,515 Existing home sales (2010) Existing home sales (January-March 2011) $108,000 5,438 New home sales (2010) 781 underwater—they owe more on their mortgages than the homes are worth. I’m sure a lot of those folks now wish they’d rented . Even renters who want to take advantage of low prices face obstacles . Tighter lending standards require higher credit scores and as much as 20 percent down payments . Some don’t want to part with any precious cash in this economy, and some would like to improve their credit scores to lower down payments and interest rates. And for all the bargain prices of homes, investors using cash are swooping in and buying them ahead of those who want to live in them. Trying to work with a homeowner through a short sale—in which the bank allows the owner to sell for less than is owed on the mortgage—can take months with no guarantee of success. Just because home prices are down doesn’t mean buying is a bargain over renting. And one thing you shouldn’t buy right now is a Strip-facing condo unit. You can lease a unit at CityCenter for less than half what you’d pay for a mortgage, homeowners association fees and taxes in most cases. You can rent a studio at Veer Towers in CityCenter for $1,200 a month, but buying the same place would cost $353,000, Collins says. After putting 20 percent down, the monthly mortgage payment on a 30-year loan at 6 percent would be $1,700. Add in $588 in association fees and $200 a | 16 MAY 2011 | month in taxes and the payment is closer to $2,500 a month , Collins says . That’s $1,300 you could invest in the stock market or another venture . Some in Las Vegas, though, should look at buying. They’re people who know they’re going to be in here 10 years or longer, have stability in their work and income and know they’ll save money by purchasing, especially for plenty of higher-end homes. Collins cites 3,400 square-foot homes popular in Summerlin that rent for about $4,500 a month. Those homes sell for about $600,000. The mortgage will be about $2,900 a month on a 30-year loan, association fees run about $250 and taxes $400 a month. All in, that’s about $3,500 a month combined, which is $1,000 less than renting, she says. So if you fit those criteria, then you should buy . Just because renting is a viable option, it doesn’t mean the dream of homeownership has died forever. I may still purchase a home one day, but sometimes dreams don’t follow one path and instead have alternatives, especially if I choose bachelor, high-rise living. For now. Grandpa was right as he always was, but he was right for the era he lived in when people stayed in one place, jobs were secure over a lifetime and you saved money by buying rather than pouring your money into rent. Maybe it’s a good thing I never told Grandpa Wargo I used to sneak into my piggy bank, too. $195,950 Median price of existing homes (March 2011) New home sales (January-March 2011) Median price of new homes (March 2011) 85 percent 59 percent 67 percent 17,528 Percentage of homes underwater Las Vegas homeownership rate National homeownership rate Bank repossessions (2010) 25 percent Percentage of foreclosures that are strategic defaults (Nevada) 29 KYLE HANSEN