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