August 2019 SFR closings were flat over last month but 2.7% up from August 2018. The overall market has failed to keep pace with 2018 except for the luxury market segment which remains relatively strong . The Greater Las Vegas residential real estate market continues to lag just over 6% from last year. Meanwhile, the high rise market segment sustains its lackluster trend with no improvement in sight.
SFR inventory remains 2.6 months overall, but there is a wide variance from community to community – ranging from 2 to 25 months of inventory – depending upon the specific community. The months of inventory decreased from 2.9 months as a result of the slow decline in listings taken during the past three months and the current strength in closed sales over past few months. Yet, that doesn’t seem to curb the over pricing as it’s on the rise again! The SFR Over Pricing Index is at 65% with 27% of all SFR inventory having been on the market for more than 90 days without an offer.
The median closed sales price of an SFR improved very slightly to $305,000 while the average closed sales price of an SFR dropped from $359,411 to $354,281 for a 1.4% decrease. Again, there was somewhat more cash and alternate financing this month, but we will have to wait to see if a drop in the Fed rate spurs financing going forward. Both the median and average closed sales prices of an SFR remain below the 2006 peak!