Federal Reserve Interest Rate Cut Is Good News For Las Vegas Real Estate

From the Mortgage Matters Newsletter:

The long awaited Fed decision arrived with a bang! The Fed surprised many economists and traders with a half percent cut in both the Fed Funds and Discount Rates. Stocks soared higher and enjoyed their largest gain since 2003.
What does the Fed cut mean? Rates on consumer debt, car loans, and Home Equity lines will all benefit. But because Home Loan rates are tied more closely to inflation, it is not uncommon to see less of a reaction...or even an opposite reaction in mortgage rates.
The Fed cut also hurts rates of return on investments, which gives foreign investors less incentive to invest in US securities. This has sent the Dollar much lower against the currency of most major foreign countries. This makes foreign goods more expensive for us to buy, which adds to inflation pressures.Overall, the Fed cut is good news for the economy, but may nudge inflation a bit higher.
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Uncle Jack's take on it:

We started getting some good news 3 weeks ago with the discount rate cut, and now, this 1/2 point drop in the fed rate is another shot in the arm. As Gary Keller, the founder of Keller Williams Realty always says "All Real Estate Is LOCAL". The fundamentals of Las Vegas haven't changed at all. Low unemployment, job growth, more people moving in than moving out. All unchanged.

The first buyers off the block (or the fence, in this case) will either score the best deals, or score the best home. Investors are out snagging the foreclosures. The vast majority of the homes in Vintage Vegas that are on the market are pretty crappy. The nice ones aren't nearly as discounted and aren't going to be either. The selection of the BEST homes in Vintage Vegas has never been better.

The big difference between Vintage Vegas and the Suburbs, is that EVERY home in Vintage Vegas has to be considered a "custom". There are no 2 alike. Out in Summerlin, or Green Valley or Alliante, or countless neighborhoods on the way to them, there's dozens, if not hundreds of absolutely similar properties for sale. Not so in Vintage Vegas. Each home is old enough to be unique.

There's some fantastic property that's ready for the smart buyer. And, there's some terrific bargains for the savvy investor or owner occupant, but they will need some or a lot of work. 3 or 6 months from now, I'll be hearing buyers lamenting that they didn't buy last summer or fall.

It's inevitable. All real estate is local. The dynamics of the gentrification of the urban core can't be stopped.