Greater Las Vegas Real Estate Market Update – January 2019

The First Property Management Pre-Licensing Class for 2019

Las Vegas Market Overview

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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.

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