Greater Las Vegas Real Estate Market Overview
April 2017 Single Family Residential (SFR) closed sales were down 10.65% from March and 0.3% less than April 2016. Some of the slippage is likely due to the fact that the last two days of April fell on the weekend. However, year to date 2017 closed sales remain up 9% over 2016. The median closed sales price of a SFR improved 2.89% to $249,000 while the average closed sales price of an SFR also increased by 0.77% to $286,365. Residential resale activity continued to be brisk in April leaving us with less than 2 months of inventory and less than 5700 available SFR listings.
The bank owned (REO) segment of the market experienced significant contraction this month, falling from 6% of the closings to just over 4%. Additionally, homes priced below $250,000 continue to make up an increasingly smaller segment of this market. Below we can see that closed units below $250,000 have contracted by 6% and that volume shrunk by 5%.
Over Pricing Index
The charts below are an attempt to get a better handle on the current over pricing situation. The charts look at a rolling 12 month average of original listing prices and compares that to a rolling 12 months of closings. It only include SFR data for properties that had an original list price between $250K – $1M in an effort to avoid any skewing from the high end listings (over $1M). The CON/TWN chart includes data for properties has had an original list price below $1M. The rolling 12 month averages provide a smoother trend line than using actual monthly numbers. It looks like we were getting the over pricing under control in the latter part of 2013 and early 2014, but since then the over pricing gap has increased with the average amount of over pricing per SFR being nearly $42,000.
Siena Golf Course Update
There has been a lot of discussion about the future of the Siena Golf Course over the past few weeks. On May 3, 2017 there was a special Board of Directors meeting devoted to this one issue and it afforded residents to offer comments and have a serious dialog on this subject. The meeting was well attended and most productive under the proactive leadership of the current Siena HOA Board. The event was videotaped and uploaded to YouTube in four segments.