Advantage Buyer ???
The 1st Quarter of 2019 shows no signs of the Las Vegas real estate market picking up anytime soon. In fact, the market remains 14% behind last year and I believe that trend will continue throughout 2019. Current supply and demand leaves the current market with 3.9 months of SFR inventory. However, the chart below depicting sales by community reveals anywhere from 2 to 19 months of inventory – depending upon the specific community. If three to six months of inventory is considered a balanced market, then we now have quite a few communities where the negotiating advantage clearly goes to the Buyers. So it’s really too bad to see over pricing on the rise! The good news is that this market shift has put downward pressure on listing prices of available inventory as well as SFR closed sales prices. February 2019 SFR closed sales improved nearly 7% from January 2019 but is down just over 8% from February 2018 SFR closings. The median closed sales price of an SFR dipped to $296,000 in January for a 1.3% decrease over last month while the average closed sales price of an SFR was nearly flat at $350,370.
So what is the bottom line? Your cheese has been moved and if you are prospecting and managing your business the same as you did in past years – that’s probably a mistake! It’s time to move your own cheese! For example, how does your average sales price compare to the Median Closed Sales Price of SFR sales?