Current Las Vegas Market Individual Charts
Current Las Vegas Market Report
2022 closings are 25% off the 2021 pace but we will end up a little better than 2008. Listings taken, available listings, and homes in escrow all dropped significantly again in November. There are just over seven months of inventory for SFR listings, but it ranges from 4 months to 27 months depending on which community we investigate.
The median sales price of SFR closings dipped from $440,000 to $430,495 while the SFR average closed sales price fell to $528,649 for a decrease of 3.3%. The luxury market closings slipped to 71 in November and it’s now likely that 2022 luxury closings will end up slightly behind 2021. The last chart below really shows the shift in sales by price point.
One caution – market prices are not falling consistently across the market as evidenced by rising prices in the luxury market! Each community, subdivision, and price point must be considered on a case-by-case basis.
The real estate market has rapidly gone from only a few weeks of marketable inventory to just over 7 months of inventory. That coupled with falling sales and a significant drop in listings taken have caused the over pricing index to jump to 63%. With seven months of SFR inventory, buyers now have the initial negotiating leverage in most communities throughout Greater Las Vegas. Note that I am not referring to this as a “Buyer’s Market”. That’s because every transaction has both a buyer and seller, so it’s all about negotiating leverage as driven by supply and demand.
Listing agents must seriously consider the current supply and demand profile when preparing a comparative market analysis for sellers. However, both Sellers and Buyers are anxious for the moment, so fasten your seatbelts as we close out 2022! One key right now is to properly price new listings. Perhaps it’s time to bring back my favorite video on this subject?
Clearly the market is adjusting to the political, economic, and financial conditions that have been thrust upon us. The consumer as well as the real estate professionals will also adapt to these changes. For example, some potential buyers are sitting on the sidelines, but others are moving forward with perhaps a smaller house for now with the belief that one day they will be able to refinance into a better mortgage. Others are considering attached homes as we see the condo and townhome sales continue at a very good pace.
Most importantly – even as we see sales potentially slowing for a while, we will not revisit the market collapse of 2007! This market has challenges but is far healthier than that! The closing “brakes” are on, but the market is not fraught with the same forces and variables that created the 2007/2008 market problems! More importantly, do not pay that much attention to media articles that are gloom and doom – even if they are sprinkled with some factual elements. If that fails – please treat yourself to a full news blackout – and make a few more sales instead! LOL
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