Las Vegas Real Estate Market Update – April 2016

redrock1Las Vegas Market Overview

The short version!  Demand UP! Prices DOWN! Inventory DOWN! Closings UP! March Madness was not exclusive to NCAA basketball.  The median closed sales price of a Single Family Residence (SFR) dipped slightly from $220,700 to $220,000 while the average closed sales price of an SFR dropped 1.6% from $263,262 to $259,109.

Click Here for the current Market Update

Click Here for Additional Las Vegas Market Update Charts

March SFR closings were 32% better than February and 3% better than March 2015.  The result is continues slow, but steady improvement over 2015 closings as demand picks up even as prices remain soft.  

Slow but Steady Improvement over 2015!

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Over Pricing

Over pricing is alive and well.  Newer listings are being priced closer to market values and are therefore getting into escrows very quickly while the those priced poorly are languishing in this market.  So now we have higher absorption and fewer months of available inventory.  Now reduce that inventory by about 75% – because that about the percentage of available SFR homes that are over priced – and we have just created a scarcity of marketable inventory.  What the hell does all of that mean?? Well, I’m suggesting that the “marketable” inventory will most likely receive multiple offers and/or back-up offers as a result of the massive over pricing.  Those sellers will be less likely to extend escrows to be very sensitive to buyer delays in the escrow process.  Further, the lack of marketable inventory caused by the over pricing will inevitably push a number of buyers and prospective buyers into the new home market to avoid over pricing headaches!

Overpricing

As discussed above, the Greater Las Vegas now only enjoys a 2.6 months supply of inventory, which represents a one month loss compared to last month.   The charts below also show which areas improved in market value or declined in market value.

Last Month/This Month Comparison of Market Changes by Area

AreaPrices-feb-2016

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The Listing Presentation – One More Time!

Maybe this short video should be added to your listing presentation??

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2 thoughts on “Las Vegas Real Estate Market Update – April 2016

  1. I don’t understand what the mystery is about conventional financing and Nevada…..CoreLogic says Nevada / Clark County is…..#1 in the country in negative equity…..#1 in the country in delinquent loans….#1 in lack of supply per capita…..Is the only state in the country that has a law on its books that awards the plaintiff bar a potential $50K award for foreclosure documentation error’s……

    As far as over pricing driving buyers to the new home market….?…Funny, I think the builders only built just over 7K houses last year, with less than 2% under $200K….Would not put to much credence in a big movement of buyers running to that market…..They can’t afford it…..!!

    To finish, how about that “SQUATTER” problem…..We never even heard of squatters until after the 2013′ legislature……

    So what is NVAR going to do in the next legislature to help our continuously struggling housing market…..??

    Mark E. Rowley ….ROG….W. Charleston…..

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    1. Mark,

      I truly hope everyone reads your insightful comments at least twice as they are right on target. This is why I personally appreciate local lenders and banks more than the national and international companies. Local banks, credit unions, and lenders are vested in our local market and exhibit an optimism that is lacking with the “big guys”! We have seen that over and over with jumbo and non-conforming loans. Our local partners will step up to the plate and underwrite loans that others will not.

      Over pricing is what it is, but it does create opportunities for new home builders that they have lacked for quite a while. It’s true that their numbers are still very small, but they are inching their way back into the market. I, for one, welcome that.

      Your comments are always insightful and most welcome! Thank you very much Mark!

      Like

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