Forrest’s Blog

The Greater Las Vegas real estate market has sustained the momentum that we have witnessed these past several months!  We continue to purge this market of a great deal of bank owned property.  Bank owned REO sales accounted for nearly seventy percent (70%) of all residential closings. The number of available listings is holding steady and again July closings were close to 20% above the June numbers.

Great, so let’s dive right into the positive news and numbers this month . . . but first download and take a look at: July 2008 Resale Market Snapshot.  

We still see many more properties listed “in the selling zone” and selling in a relative short timeframe while those “out of the selling zone” continue to age in MLS without selling. Approximately 40% of July 2008 closings (those in the selling zone at listing) were under 90 days on the market with an average of 60 Days on Market.  The remaining 60% suffered an average of 230 Days on Market (that’s nearly 8 months … definitely out of the selling zone).

Listing prices have now dropped 23% since September 2007 while closed sales are up 194% since their low in December. June closed sales represent another 18% improvement over June; more importantly, this is the third month since August 2006 that we have witnessed more than 2000 single family home closings. Closed sales prices dropped another 5% in the past month; that means that closed sales prices continue to decline faster than listing prices . At the same time overall inventory generally held constant. The average Cumulative Days on Market is still 163 days and this market continues to carry a high number of overpriced listings in inventory.  Yet the very best news is that July closings represents a seventeen percent (17%) 30-day absorbtion rate; compare that to 4.9% in December 2007!

The current momentum has certainly set a good tone for the balance of 2008.  (See SFR Sales Trends 2004 - 2008). In fact, it’s looking like that the remainder of 2008 may trend above the same period for 2006, even with a normal seasonal downturn in closings.  This may be far from a full recovery, but we’re now moving in the right direction!

But let’s stay Focused on Price Reductions and assist even more sellers by getting their listings in “The Selling Zone”!

ON AUGUST 1, 2008 THE MLS IMPLEMENTED A NEW PROPERTY TYPE “VERTICAL”

The Vertical Property Type will be geared to high rise units and specific amenities they provide. See the new “Vertical Data Form“. You may use the new property type for existing high rise listings by withdrawing them from Residential Condo and re-listing them under Vertical.  Of course, you will need proper paperwork to effect the withdrawal and subsequent new listing. 

Effective August 1, 2008 all new high rise listings should be entered into the new Vertical Property Type in lieu of utilizing the Condo subtype under Residential.  This has been worked on for quite a while and I know that many of you are anxious to be able to place your listings in this new area.  If you have additional questions or would like additional information please contact the MLS Department at 702-784-5050.

When you enter a high-rise listing into the new Vertical property type, you will be able to specify the project and tower name and with other specific information that is unique to these structures.  For example, there is a place to indicate that the building is either “Green Certified” or “LEED Certified” should the building meet certain specified energy standards.  For more information on LEED Certification, go to:  http://www.usgbc.org/

One last thing . . . For some interim period of time you may dual list your high-rise in both the Residential Condo property type along with placing it in the new Vertical property type.  That will allow you to avoid withdrawing it from Residential Condo until we are notified otherwise.

Again you really have to be motivated by this month’s resale closing stats for the Greater Las Vegas real estate market!  It is clear that  we are moving a great deal of bank owned property off the market.  This month sixty-five percent (65%) of all residential closings were REO properties; seventy-two percent (72%) if you include short sale closings.  The number of available listings is holding while the closings are very nicely up again and the inventory is taking about the same time to sell.

Great, so let’s dive right into the positive news and numbers this month . . . but first download and take a look at: June 2008 Resale Market Snapshot.

Increasingly again, more and more properties are coming on the market “in the selling zone” and selling in a relative short timeframe while those “out of the selling zone” continue to age in MLS without selling. Approximately 36% of June 2008 closings (those in the selling zone at listing) were under 90 days on the market with an average of 60 Days on Market. That is up from 25% based on March closings. The remaining 64% suffered an average of 230 Days on Market (that’s nearly 8 months … definitely out of the selling zone).

Listing prices have now dropped 19.5% since September 2007 while closed sales are up 149% since their low in December.  June closed sales represent another 5% improvement over May; more importantly, this is the only the second month since August 2006 that we have witnessed more than 2000 single family home closings. Closed sales prices dropped another 5% in the past month; that means that closed sales prices continue to decline faster than listing prices . At the same time overall inventory generally held constant. The average Cumulative Days on Market is still 169 days despite the fact that many overpriced listings remain in inventory.

June closings mays still set the tone for the balance of 2008.  This is the first time since 2006 that June closings were above the May closings!  So at the very least June has given this market some momentum going into the summer months! You really have to love that!

But even with all the good news, let’s stay Focused on Price Reductions!

2000 SFR Closings - First time since August 2006!

You just have to be motivated by this month’s resale closing stats for the Greater Las Vegas real estate market!

 There are several excellent signs this month that the sluggish Las Vegas market is poised for a nice rebound. The number of available listings is down while the closings are very nicely up and the inventory is taking less time to sell. You’ve got to love that!

Great, so let’s dive right into the positive news and numbers this month . . . but first download and take a look at: May 2008 Resale Market Snapshot.

Increasingly, more and more properties are coming on the market “in the selling zone” and selling in a relative short timeframe while those “out of the selling zone” continue to age in MLS without selling. Approximately 35% of May 2008 closings (those in the selling zone at listing) were under 90 days on the market with an average of 60 Days on Market. That is up from 25% based on March closings. The remaining 65% suffered an average of 230 Days on Market (that’s nearly 8 months … definitely out of the selling zone).

Listing prices have now dropped over 16.6% since September 2007 while closed sales are up over 137% since their low in December.  May closed sales represent another 17% improvement over April; more importantly, this is the first month since August 2006 that we have witnessed more than 2000 single family home closings. Closed sales prices stabilzed and curtailed their decline and offer some hope that this market is genuinely poised for some more good months ahead. At the same time overall inventory continues to decline. The average Cumulative Days on Market has dipped to 170 days despite the fact that many overpriced listings remain in inventory.

This month could set the tone for the balance of 2008.  Just a small amount of momentum from June closings could set the stage for a fourth quarter that has a legitimate chance of being better than the last quarter of 2006!  At least that is the optimist in me!

But even with all the good news, let’s stay Focused on Price Reductions!

Are you a Winner at a Losing Game? 

You may be if you continue to take listings that you love, but at listing prices that will not love you in return.  Rascal Flatts certainly didn’t have over-priced listings in mind when releasing “Winner at a Losing Game”, but the lyrics sure capture the pain of not “dancing to the same beat”.  Seventy percent of April’s closings finally sold after causing seller’s and listing agents many months of time and money to get the desired results.

However, there is even more positive news in the numbers this month . . . but let’s first download and take a look at: April 2008 Resale Market Snapshot.

There are now properties coming on the market “in the selling zone” that are selling in a relative short timeframe while those “out of the selling zone” are just aging in MLS without selling.  Approximately 30% of April closings (those in the selling zone at listing) were under 90 days on the market with an average of 59 Days on Market.  That is up from 25% based on March closings. The remaining 70% suffered an average of 224 Days on Market (that’s nearly 8 months … definitely out of the selling zone).

Listing prices have now dropped over 12.3% in the past six months while closed sales are up over 103% since their low in December. April closed sales represent a 21% improvement over March; more importantly, this is the first month in 2008 that closing are up over the same month in 2007. Closed sales prices continue to decline bringing more buyers off the sidelines and into the market. At the same time overall inventory continues to decline. The average Cumulative Days on Market is dipped to 174 days while too many listings remain woefully overpriced.

Okay, let’s look at some more good news: Dowload the Under Contract Chart. This chart illustrates actual contract written on a monthly basis since January 2007.  The actual number are less important that the trend - which is showing a steep increase and is a leading indicator of future closings.

Stay Focused on  Price Reductions!