Market values rose sharply as buyers were out in droves despite the summer heat wave. Henderson and the Southwest have about 3 months of inventory while the remainder of the Greater Las Vegas area is down to about 2 months of inventory. Over pricing of the majority of SFR inventory is generating multiple offers on many of the properly priced listings as the remaining inventory continues to rack up extraordinary “days on market”. Financing has improved, but many sellers are now unwilling to extend close of escrow if the financing is not completed per the COE date in the contract. This suggests that some number of sellers in escrow are sitting on very good back-up offers.
June SFR closings were up 10.5% over May and nearly 14% higher than June 2014. The median sales price of an SFR improved by 4.27% to $220,000, while the average price climbed to $259,819 for a 5.7% gain over last month.
Finally, review the over pricing chart below. Why? One can see all the potential tell tale signs of a potential bubble. But there is no bubble and ignore reports of bubbles! Why? Because we can thank conservative appraisals and conservative loan underwriting standards for providing a check and balance against such a bubble! There are no more NINJA loans! Having said this – appraisals are coming in higher and stronger – a clear sign that distressed sales are having less and less influence on appraisals.
Just as we are seeing strong momentum in the luxury market, the momentum in high rise and vertical continues as well.
The average price of listings taken in June dropped sharply even as the average closing price of an equity SFR sale rose.