Once again it’s time 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.
Walk-ins are welcome on Thursday beginning at 7:30 am, February 25th in our Summerlin office at 10777 W. Twain Ave., Suite 333!
Las Vegas Market Overview
The number of listings taken dropped sharply this past month, even as closings were up more than 700 units from November. So, for the first time in four years we ended up with more units closed than during the previous year. In this case 2015 closings were up 6% over 2014. The median closed sales price of a Single Family Residence (SFR) dipped to $217,000 from $220,000 while the average closed sales price of an SFR dropped by 6% to $252,401.
Overall closings for 2015 are roughly 6% higher than last year. In fact, December closings were up 714 units over November closings which represents a 36% increase over last month and a 21% increase over December 2014. It was four years ago in 2011 that this market experienced a higher number of closed units than the previous year!
Let’s Take a Closer Look at the December Price Drops!
We stated earlier that prices dropped roughly 6% just this past month. Consequently, I’m already getting calls asking me about the possibility of another market crash or bubble bursting! OMG! The naysayers – glass half empty folks are already poised for bad news! We also saw that SFR closings were up just over 700 units. So, let’s compare Southwest closings for November and December. They were up over 200 units in that area alone, but with an average sales price $36,000 lower per unit than in November. The point is that the drop in market values for December are not uniformly spread across the entire Greater Las Vegas market area. In fact, check out the East and there we see a price increase. All real estate is local, so please do not be distracted by negative articles selling gloom and doom predictions. It’s good for ratings and sales, but it’s simply not REALITY!
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?