Congratulations to Lee Barrett on being appointed our newest Nevada Real Estate Commissioner on November 1st. I’m thrilled for Lee and already looking forward to the upcoming December hearings! Oh – click on Lee’s pic for a short tribute to his career in real estate as depicted on his license plate! See you soon!
Las Vegas Market Overview
Inventory levels dropped sharply this past month, but that is normal this time of year. The median closed sales price of a Single Family Residence (SFR) remained flat at $220,000 while the average closed sales price of an SFR rose 3.6% to $268,557. Thus the Greater Las Vegas market enjoys a four months supply of inventory based upon the current supply and demand numbers. The fact that the average price is on the rise while the median price is flat suggests that while there an equal number of closings above and below $220,000 – that the closings above $220,000 are generally higher than last month. We will look at this in more detail below.
Overall closings year to date for 2015 are roughly 5% higher than last year despite a slowdown in closed units during November. Remember that 2011 was the last time that this market experienced the number of closed units being higher than the previous year!
A Look at Prices by Price Point by Year!
The next few graphs and charts illustrate the movement of closed sales by price point. For example, we see that in 2011 over 33% of the closings were under $100,000 – but that has dropped to nearly 3% in 2015. You may want to click on each item below to see a larger, more readable version.
The next two charts below attempts to create a visual of the shift from lower priced closings in 2010 and 2011 to the higher price points in the years following.
Finally, here are the median and average closed sales price changes over the past six years. Have you made your adjustments to these changes? Forty-seven percent (47%) of all 2015 year to date closings were in the price range of $200,000 – $400,000. That compares to only 15% in 2011 when over one third of all closings were under $100,000. Perhaps you may need to consider an adjustment to your 2016 business plan based on these findings?