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August – The Real Estate Reality Show

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2020 residential closings remain approximately 10% behind 2019 even as August dropped a bit in closings! Of course, this is expected in August and the record breaking summer heat wave didn’t make showings any easier.  Meanwhile,  SFR inventory improved slightly to 1.8 months overall due to an increase in listings taken even as closings dropped.  This translates to less than one month of marketable inventory due to Over Pricing.    However, Over Pricing was greatly reduced this month due primarily to:

• New listings being priced properly and selling well under 45 days
• Old inventory finally selling (See the community sales chart below)

Some of the older inventory may have sold as a direct result of prices finally catching up with listing prices. The average sales prices of an SFR increased 16% during the past twelve months.

Fun Stats for August:

• SFR closings that had more the 120 Days on Market (DOM) – 257
• 63 of those closings were priced at $300,000 or less
• 29 SFR closings had DOMs over 300 days.
• SFR closings with the longest continuous listing: 865 DOM, Listed March 2018
• SFR closings with the second longest continuous listing: 849 DOMs, Listed March 2018; Listing & Sale Price: $179,900
• My favorite long listing: 590 DOM$549,000, Closed at $445,000, Public Remarks begin with “Motivated Seller!”  At least it didn’t say “Won’t last long!”

Market Snapshot

There were 5,063 residential listings taken in August – up 216 units from July.  The 7,044 available listings at this time is only 80 homes more than last month, while the 5,182 Pended listings reflects a 5% decrease in open escrows.  Similarly, the 3,596 residential closings in August is a resounding 10.7% decrease from previous months closings.  So when can we conduct Open Houses again?? We can conduct them safely with proper protocols, procedures, and precautions – but that message keeps falling on deaf ears!

The median closed sales price of an SFR jumped from $330,000 to $335,000.  Similarly, the average closed sales price of an SFR went from  $389,115 to $409,529. Yes – we broke $400,000 in the average closed sales price for an SFR closing in August 2020. The SFR average sales price has risen 6% this year – in spite of the media gloom and doom reports. 

But what continues to take the Greater Las Vegas real estate market by storm is the incredible performance of the luxury market sales.  This is true both in new home and resale closings.

Note of Caution: We are experiencing a lumber shortage which is causing some slowdown in new construction and major rehab projects.  A recent Fortune report by Lance Lambert on August 31st is titled; ‘Severe lumber shortage’ is adding $14,000 to the cost of a new home. Click Here to Read this Article

 

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