Las Vegas Market Update – September 2013 – And Let’s Peek In on Phoenix!

OverpricedUpcoming Property Management Permit Course

First, I am going to shamelessly plug Americana’s Pre-Licensing Property Management Permit course that is approved by the Nevada Real Estate Division. This course is excellent for those who want to obtain their Property Management Permit or even for those who just want to learn more about Landlord Tenant laws  and managing properties in Nevada. Registration is now open.

Just click here to view the course and/or register.

However, walk-ins are welcome on Monday afternoon beginning at 8:00 am, September 19th in our Summerlin office at 10777 W. Twain Ave., Suite 333!

Let’s Talk Overpricing!

SeptSnapshotSFRThe average closed price of an REO in August was $177,481 while the current average available REO property is $204,577.  That means that the average listed REO is about 15% overpriced.  Similarly, currently available short sales are approximately 22% overpriced while traditional equity listings are generally 80% overpriced, as is the overall overpricing average. It was actually worse in January when listings were roughly 130% overpriced.  However, the primary reason for that we are % overpriced is because the gap between average listing price and average closing price has narrowed.  Thus – overpricing is still a significant issue.

Also, keep in mind that there were only around 5,000 total available residential listings in January.  However, at this moment we are knocking of the door of 8,000 available listings.

Finally, this condition is not exclusive to Las Vegas!  Really?  Overpricing is alive and well in the Greater Phoenix / Scottsdale market.  Click here to download a snapshot of the Phoenix market.

The Current Las Vegas Market

Single family residential (SFR) closings for 2012 continue to lag last year by 9.6%. The SFR median closed sales price is now $182,000 for a YTD increase of 22%.

Click Here to Download the Current Market Update

The first page of the January 2013 Market Update Report is included on page 8 of the downloadable report above to make it easier to visualize the remarkable changes we have witnessed in just the past 8 months.

Click Here for Additional Market Update Charts

Las Vegas Market Closings by Sold Terms

Let’s compare current financing opportunities now with those at the beginning of 2013.

ClosingsByTermsDec2012ClosingsByTermsAug2013Only 48% of August closings were cash compared to 55% in January. It’s my opinion that the shift away from cash is a combination of things at present.  First, Las Vegas is shifting away from a distressed sales market thereby allowing for better underwriting of loans in this area.  Secondly, investors are slowing down purchases due to decreased yield opportunities, especially for shorter term (up to 3 years) buy and hold.   Finally, there has been modest improvement in the jobs situation.

Las Vegas Closings by Property Type

Comparing closings by type at the beginning of the 2013 with the current month clearly illustrates the shift towards a non-distressed market in a big way.

ClosingsByTypeDec2012ClosingsByTypeAug2013Distressed sales continue to give way to traditional, equity sales as the Las Vegas Market recovers. Rising market values are definitely making it more difficult for yield investors to acquire additional properties for their portfolios.  At what point will they begin selling?

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Categories: Market Stats, MLS, Pricing, Property Management, Short Sales | 4 Comments

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4 thoughts on “Las Vegas Market Update – September 2013 – And Let’s Peek In on Phoenix!

  1. Pingback: Phoenix and Scottsdale Market Update – September 2013 | Arizona Properties Blog

  2. Pingback: Las Vegas Market Update – September 2013 | Nevada Properties Blog

  3. Primary, I am going to shamelessly stopper Americana’s Pre-Licensing Property or home Managing Make it possible for course that is approved with the The state of nevada Real estate Scale. This series is fantastic for many who would like to acquire their house Managing Make it possible for and even for many who want to learn more about Landlord Tenant legal guidelines along with controlling qualities throughout The state of nevada. Sign up is currently open.

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  4. Good post about Las Vegas Market Update – September 2013 – And Let’s Peek In on Phoenix.

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