Market Overview – 2019 is in the Books!
January 2019 began by falling behind 2018 by 18% right out of the gate and much of the first quarter was just as dreary! However, December 2019 SFR closings were up 7.95% from November and up 21.14% up from December 2018. The overall residential resale market (including residential, high rise, and multi-family sales) closed out 2019 by being off only 1.25% from the 2018 numbers with just over 42,000 resales closings for the year. Overall 2019 market appreciation for Single Family Residential (SFR) homes was held to 5.5% over 2018. So – despite a poor start and challenges with lending, appraisals and affordability issues, the Las Vegas real estate market is rebounded quite nicely with some momentum to take us into 2020.
SFR inventory decreased to 2.3 months overall despite the increase in closings – primarily due to the lack of listings taken the last two months of the year. Only 2,646 residential listings were taken in December; that’s about half the listings taken in December 2018. Again, there is a wide variance from community to community – ranging from 1 to 44 months of inventory – depending upon the specific community. The level of over pricing The SFR Over Pricing Index is at 64% This index was completely updated to reflect current market conditions along with the year over year change in supply and demand. It now includes all SFR listings and closings under $1,000,000 and the Days on Market have been increased to 45 days from 30 days to better reflect the market. That was done because over 2019 the average days from list to close has increased to about 46 days. But even with this adjustment 64% of the available inventory remains over priced. Inventory priced correctly sells as expected, but improperly priced listings continue to languish on the market – even when there are multiple price reductions!
The median closed sales price of an SFR reached a high water mark for 2019 at $312,745 for a 1.87% increase from November. Similarly, the average closed sales price of an SFR went from $365,327 to $369,314. That’s only a 1.09% increase but it is the highest monthly average closed sales price for 2019.
You will note that “Other” now makes up 3% of the Closings when we look at “Sold Terms”. That is because we are seeing an increase in both 1031 Tax Deferred Exchanges as well as Owner Will Carry transactions.
Property Management Permit Pre-Licensing – First Class for 2020