2020 remains 16% ahead of 2019 at this juncture – despite the challenging couple of weeks we endured! Meanwhile, SFR inventory increased to 2.2 months overall fueled by another increase in closings and couples with a sizable increase in the number of listings taken last month. Again, there is a wide variance from community to community as the supply versus demand conditions are dependent upon the market forces in those specific communities.
Market Over Pricing
The level of over pricing The SFR Over Pricing Index dropped once more to 40%, This is due in part to many older listings finally selling at the same time that a very large batch of new listings hit the market! The newer listings seem to be more prudent in their initial pricing as we see an overall lower listing price on available properties. However, let’s look into the over pricing a little more deeply and have some fun with the facts.
Some of the homes that have remained on the market for more than 120 days appear to be very stubborn about wearing this statistic. For example, consider the following Fun Facts for this 20 Percent of available listings:
- 310 homes have been on the market continuously for more than 365 days
- 9 homes have been on the market for more than 1000 days
- 2 homes have been on the market since February 2013 (2601 Days on Market)
- 1 property has been on the market since February 2014. The Agent Remarks proclaims that “Seller is looking for offers”.
- 77 listings claim that the “Sellers are motivated” – Really?
There were 4718 residential listings taken in March – 500 more than in February. The 7722 available listings is a demonstrative 28 percent increase from February, while the 3874 Pendings reflects a 30 percent decrease in open escrows. However, the 3874 residential closings signifies a strong 12 percent increase over the previous months closings. I’m pointing all of this out to highlight the overwhelming amount of activity that remains in the Las Vegas market despite the disruption in our daily lives due to this pandemic. This is an important message because many of our sellers, buyers, and clients may have the impression that real estate activity has halted. Clearly that is not the case. The Sales Executives of the Greater Las Vegas market continue to serve their clients and the public in this difficult time. They are striving to assist clients in achieving their real estate goals and dreams!
The median closed sales price of an SFR increased from $316,000 to $319,000 – which is a mere 1% from February 2020. Similarly, the average closed sales price of an SFR went from $371,338 to $371,942 – virtually flat. Generally, there was noticeably less cash in the market last month with financed transactions enjoying a very good closing month. What did stand out was another contraction in the residential market closing at and below $250,000. The fewer closings at the lower price points again pushed the median closing prices higher.