Las Vegas Market Update – July 2014

thomas-jeffersonProperty Management Permit Course!

I am going to shamelessly plug Americana’s Pre-Licensing Property Management Permit course – again! This course is excellent – even for those who just want to learn more about Landlord Tenant laws in Nevada.  Do you want to learn how to prevent or spot embezzlement – before it becomes a problem?  Would you like to learn foolproof techniques for reconciling your trust accounts? There are lots of “how to” for brokers and licensees who want to become property managers and do it right!  Boring is NOT a word anyone has ever used to describe this course.  Registration is now open.  See you there.

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

Walk-ins are welcome on Thursday beginning at 7:30 am, July 10th in our Summerlin office at 10777 W. Twain Ave., Suite 333!

4th of July Footnote

The Continental Congress formally declared and voted for independence on July2, 1776. John Adams believed that this would be the day of epic celebration for the newly formed Colony. However, the Continental Congress experienced an onslaught of wireless networking problems, causing the original Jefferson draft to endure 86 changes and it took until July 4th, 1776 to finally approve the text.  So much for epMail (express pony Mail)! And of course – like many of our own transactions – they didn’t get the signatures until August 2, 1776.

More remarkably, both John Adams and Thomas Jefferson were alive on July 4, 1826 to observe the 50th anniversary of the Declaration of Independence.  John Adams passed that morning.  His final words were; “Independence Forever.  Jefferson survives”!   However, Thomas Jefferson passed around 1pm that same day!

 

The Current Las Vegas Market

Closed sales for Year-To-Date 2014 remain 13.% behind last year as we enter into July. The median sales price of an SFR is now at $199,900, a 2.5.% increase from last month and a 14% increase from one year ago. Available REO listings continue their decline, and REO closed sales prices dropped precipitously in June.  Short sales closed prices improved with the median sales price of $170,000; that is $20,000 higher than the median price for an REO.

The most discernible change if the Greater Las Vegas has been the accelerated transition from a distressed to non-distressed market.  That in turn has triggered an amazing improvement in financing versus cash sales.  The charts below illustrate the rapid changes in just the past six months.

LV-SoldTermPie-Jun2014LV-SoldTermPie-Dec2013

The supply of SFR homes dropped to 2.6 months while Condos and Town-homes have now dipped to a 3.4 month supply. Most areas within Greater Las Vegas experienced  improvement in the average closed sales prices during June.  A word of caution!  We may have 2.6 months of available inventory, but it’s probably more like 1 month of marketable inventory.  Yes, I said marketable!!  That’s because we continue to see widespread overpricing of homes in this market!

But keep in mind that Greater Las Vegas enjoys numerous “micro climates” when it comes to market appreciation or depreciation. This epitomizes the notion that “all real estate is local”! Very local when evaluating Greater Las Vegas market pricing.

Click Here to Download the Current Las Vegas Market Update

Click Here for Additional Las Vegas Market Update Charts

Here are some New Charts!

We have been following SFR closings by month and year for some time.  Earlier in the year we were nearly 16% behind 2013 in closed units.  This month we are only 13% behind 2013.  So now I want to add separate charts for Condo/Town homes and Hi-Rise closings in order to visualize these closings as well.  Both charts are included in the Additional Charts download – just above.

ClosingsByYearJun2014_CondoClosingsByYearJun2014_Ver

 

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Categories: Market Stats, MLS, Pricing, Property Management, Short Sales | 5 Comments

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5 thoughts on “Las Vegas Market Update – July 2014

  1. Mark E. Rowley

    Hi Forrest….Happy 4th……It’s a great holiday in our countries history…..The REO market will continue to get slower than it already is……The NTS number in June was lower than in May that was at a multi-year low….Source Clark County Recorders Office….I will step out on the limb on the Short Sale market……I predict that there will be under 3K SFR’s P-C in 101-606 by the end of July…..That market has come to a halt also….Even the most active law firm in the market has now exited the business model of Short Sales…..Switching gears, it has now been three full fiscal quarters since SB278 and SB321 were enacted……What is you opinon on how these laws are impacting our market place…..?….Sure would be good to get a few of those houses that now departed Associate Director of the Lied Real Estate School, Mr. Marcus Conklin said there were…..His number was 40K vacant houses last November……Have you met the new Dircector Mr. Edward Coulson…?…PHD and has taught at Penn State for the last 30 years….Maybe we can get him to work with Mr. Breslow at the Deparment of Business and Industry to do some unbiased studies on what the true condition of the Clark County Real Estate market really is….Can one really decide what the true value of our market is with the tens of thousands of units hanging various limbo because of our states politics…..?…..The Madam General put on a symposium a week ago last Monday to try and revive her “Home Again” program……The numbers of people helped and the millions that have been spent show a true disconnect of the whole situation…….Mark E. Rowley ROG, W. Charleston…..

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    • Good afternoon Mark! I think that is a solid limb! Short sales now make up only 4% of the Phoenix market and continues to decline rapidly. I would love to meet Director Edward Coulson and get hime working with both Business and Industry as well as GLVAR and NVAR.

      It’s my opinion that SB278 primarily served to properly define abandoned so as to prevent it from becoming just another revenue source. I’ve neither seen nor heard that it has expedited any foreclosures per se. SB321 is a bit more complex. Passage of SB321 primarily assured us that AB300 would be passed to deal with the issues surrounding “personal knowledge” when it came to filing NOD affidavits. However, the most impact we have received from SB321 is that it has prevented dual tracking problems. Moreover, Sec. 16.5 has assisted with the arm’s length problems, despite the fact that the form is still generally required. This alone distinguishes it in a very positive way from the California Homeowner’s Bill of Rights. . . . . . Forrest

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      • Mark E. Rowley

        Hey Forrest…..I did not know from reading all of the minutes of last legislative judicial sessions minutes that SB300 was traded for SB321….?….What were the six meetings that the Madam General had with the work group of thirty five industry people all about then…?…..In the preamble that Mr. Figueroa laid out in the introduction and AG’s office support of 321 one would have never thought one was traded for the other…..?….I agree strongly that 16.5 differentiates our HBOR bill from Cals tremendously….Where is the data that supports the dual tracking challenge has been mitigated by the bill…..?….That is good news, just wondering how that is substantiated…..As far as SB278 goes….Why did they name it the way they did then…..?…..SB278 Establishes an expedited process for the foreclosure of abandoned residential property. (BDR 9-134) ….Have to go….Thx. for the response…..Best, M.

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      • It was not a trade. The bills had linkage though.

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      • Mark E. Rowley

        AB284, plagiarized by the Madam General in the summer and fall of 2010′ when dealing with the architect of the National Mortgage Settlement Agreement, Iowa’s AG Tom Miller, see section “A” of the NMS agreement…..There you will find a different, but workable version of “Personal Knowledge”…..Our AB284 was written by Tisha Chernine Black, introduced and pushed through legislation by then assemblyman Marcus Conklin in the spring of 2011’….The NMS was not even signed in the DC court room until April of 2012’….Took six working group meetings between legislative sessions of thirty five people from the industry to produce what ended up being an eight page bill that had only one major component in it, 107.080 -.2.C….So this bill only lasted one full cycle and now you are telling me that the HBOR bill has linkage to it…?…..Please explain…..?…..Mr. Conklin said last Novemeber at his Lied symposium that 40K houses were vacant in Clark Co…..Mr. Gordon of Applied Analysis says twelve weeks ago that 48K people are not paying their mortgages, but living in their houses in Clark Co……..Then CoreLogic last month says that 29.3% of the mortgages statewide are upside down, worst in the country…….By the way, this figure does not include the HELOC count…..So my question as always, can we have a normal housing market with these underlying statistics / components just being ignored…?…..Also please let me know where you got the info for the dual tracking mitigation….?….I would like to read it…..Thx. M. Rowley….

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