Resale Demand Remains High!
The availability of bank-owned listings increased slightly in November as there are now just over 2200 available listings in the Greater Las Vegas area. Short sale listings have also increase to nearly 4500. However, there are nearly 3900 available traditional listings. REO closings in September accounted for 61% of all single family residential (SFR) sales; that is down from 80% a few short months ago. Short sales transactions made up over 17% of November sales. But again – let’s not overlook the importance of sudden strength in Classic Closings”! Traditional sellers accounted for 22% of all residential sales in October.
Let’s compare the price breakdown of all bank-owned properties in the Greater Las Vegas Area that closed in the month of November with the Classic or Traditional Closings. First here is the price analysis of bank-owned closings:
By contrast here is the price analysis of the Classic or Traditional Closings. What stands out here is the sales price range of traditional sales and the higher average and median closing prices.
Now let’s download the November 2009 Greater Las Vegas Market Stats for Single Family Residences listed under one million dollars. The “Available Homes” count increased for the first time in three months. Sales activity remains high and resulted in a one month absorption rate of over 38%. Yet again the median price of a Single Family Residence (SFR) which increased to $140,000. This represents the third monthly increase in the SFR median price in 18 months. So why are appraisers still persisting to conduct appraisals as if we are still in a down market? Why are appraisers getting away with using available listing prices of bank-owned and short sale listings as viable comparables? HVCC is NOT working!
October closings sold according to the following terms:
- Cash 41% with an average sales price of $120,676
- Conv 21% with an average sales price of $205,583
- FHA 31% with an average sales price of $149,308
- VA 6% with an average sales price of $175,545
This market has good momentum that should result in a very positive December and hopefully a good start to 2010. Of course the best news is that Congress extended the First Time Homebuyer Tax Credit through April 2010 and expanded the program beyond first time homebuyers.
For additional information on statistics, absorption rates, or getting ready for you listing presentation, check out;