The First Property Management Pre-Licensing Class for 2019
Las Vegas Market Overview
Click Here for the Current Las Vegas Market Individual Reports
Click Here for the Current Las Vegas Market Update Report
The Las Vegas real estate market experienced a dramatic slowdown throughout the last quarter of 2018 with closed sales falling 5.5% from 2017 levels. In fact, it 2018 SFR closings resemble 2016 or 2005 levels. All price points declined, but price points below $250,000 are on a downward decline with only negative momentum. Price points above $250,000 continue to enjoy positive, upward momentum despite the soft last quarter. December Single Family Residential (SFR) closed sales were down 6.7% from November 2018 and down 18.3% for the same period last year. The SFR median sales remained nearly flat at $296,250 while the SFR average closing price advanced to $346,965 for a 1.5% increase from last month. Residential inventory also dropped this past month, but with lower demand – the SFR market increased to 3.3 months of inventory. Once again, the amount of SFR overpriced listings rose sharply and now makes up 74% of what is available. So let’s take a closer look at a breakdown of that!
It’s not clear what all the factors are that is driving a market downturn, but certainly things like affordability, loan underwriting, building costs, legislation, and even tariffs may be playing a part. But the good news is that this appears to be a soft slowdown and nothing like we experienced when the bubble burst in 2006-2007. It is also a nationwide market correction where cash seems to be taking a more cautious approach to investing. I expect 2019 to be a strong year, but just not as strong as 2017 or 2018. Higher price point homes and hi-rise units have the most potential to do well in 2019.