Pricing

Las Vegas Real Estate Update – April 2017

 Greater Las Vegas Real Estate Market Overview

March 2017 Single Family Residential (SFR) closed sales were up 41.5% from February and 13.6% better than March 2016, making it the best March since 2012. Year to date 2017 closed sales are now up 12.3% over 2016.  The median closed sales price of a SFR improved 0.83% to $242,000 while the average closed sales price of an SFR also increased by 2.7% to $284,173.  Residential resale activity was brisk in March leaving us with less than 3 months of inventory and less than 5900 available SFR listings.  All property types participated in the March gains.  Condos/Townhomes were up 24.3% over February, while Hi-Rise sales improved by 28.6% and Luxury Sales by 80%


Click Here for the Current Market Update

Click Here for Individual Las Vegas Market Charts

 Over Pricing Index

The charts below  are an attempt to get a better handle on the current over pricing situation.  The charts look at a rolling 12 month average of original listing prices and compares that to a rolling 12 months of closings.  It only include SFR data for properties that had an original list price between $250K – $1M in an effort to avoid any skewing from the high end listings (over $1M).   The CON/TWN chart includes data for properties has had an original list price below $1M.  The rolling 12 month averages provide a smoother trend line than using actual monthly numbers.  It looks like we were getting the over pricing under control in the latter part of 2013 and early 2014, but since then the over pricing gap has increased with the average amount of over pricing per SFR being approximately $41,000. 

Currently 6% of all available SFR listings have been on the market for over 30 days, 52% over 45 days, and 47% over 60 days.  That’s remarkable given there is only 2 to 3 months of available inventory, but with 6% over priced – there is only about 4 weeks of marketable inventory. 


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Las Vegas Real Estate Market Update – March 2017

sienapracticeholeThe 79th (2017) Session of the Nevada Legislature!

First, there are 257 Assembly Bills and another 238 Senate Bills that are posted on the Nevada Legislature website.  AB-235 (Click Here) was introduced last week and enacts the Uniform Commercial Real Estate Receivership Act. (BDR 3-714).  To keep up to date with Legislative activity in Carson City, click on the link below.

 

2017 Nevada Legislature Calendar and Videos

 

Greater Las Vegas Market Overview

February 2017 Single Family Residential (SFR) closed sales were up 4.6% from January, but we are beginning 2017 with a 11.2% increase in closed sales over 2016.  The median closed sales price of a SFR improved 0.84% to $240,000 while the average closed sales price of an SFR also increased by 1.8% at $276,713. February saw more activity and closings than January.  SFR Months of Inventory is 2.8 months at present, but condo and townhome inventory has fallen to 1.5 months.

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Click Here for the Current Market Update

Click Here for Individual Las Vegas Market Charts

New Over Pricing Index

The charts below  are an attempt to get a better handle on the current over pricing situation.  The charts look at a rolling 12 month average of original listing prices and compares that to a rolling 12 months of closings.  It only include SFR data for properties that had an original list price between $250K – $1M in an effort to avoid any skewing from the high end listings (over $1M).   The CON/TWN chart includes data for properties has had an original list price below $1M.  The rolling 12 month averages provide a smoother trend line than using actual monthly numbers.  It looks like we were getting the over pricing under control in the latter part of 2013 and early 2014, but since then the over pricing gap has increased with the average amount of over pricing per SFR being approximately $39,000. 

Currently 61% of all available SFR listings have been on the market for over 30 days, 52% over 45 days, and 47% over 60 days.  That’s remarkable given there is only 2 to 3 months of available inventory, but with 61% over priced – there is only about 4 weeks of marketable inventory. 

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Where Were the Sales?

The chart below clearly illustrates that closed sales were not consistent across Greater Las Vegas this past month.  For example, Spring Valley, Anthem Country Club, and Providence faced decreases in closed sales – even as Aliante, Summerlin, and Mountain’s edge saw improvement.  Therefore, depending on the community, months of inventory for SFR homes ranges from 2 to 8 months.  It’s also clear that some communities had very short average days on the market (most notably Silverado Ranch and Peccole Ranch), while others such as Anthem Country Club and Siena were just over 100 days average on the market.  Some of that also suggests that some of the older inventory closed this past month.  That can also been seen by the drop in the average list price for available SFRs!

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Categories: Market Stats, MLS, political, Pricing | 1 Comment

Las Vegas Real Estate Market Update – February 2017

hole12The 79th (2017) Session of the Nevada Legislature Begins on Monday!

First, there are 102 Assembly Bills and another 102 Senate Bills that are posted on the Nevada Legislature website.  Expect the tone and dynamics of this session to be vastly different from 2015.  Let’s see how many 2015 bills are modified or repealed!  Will we see any movement on the change to permanent daylight time?  That’s really in the hands of the Congress at this point.  There is one bill that could change real estate educational requirements.

Greater Las Vegas Market Overview

January 2017 Single Family Residential (SFR) closed sales were down 21.2% from December, but we are beginning 2017 with a 16.3% increase in closed sales over January 2016.  The median closed sales price of a SFR improved 1.3% to $235,000 while the average closed sales price of an SFR also decreased by .4% at $271,738.

Click Here for the Current Market Update

Click Here for Additional Las Vegas Market Update Charts

January experienced a typical seasonal drop in closed units but there were nearly 4400 new listings taken during January.  This resulted in a small increase in overall months of inventory available.  In fact, SFR Months of Inventory is just short of 3 months at present, but condo and townhome inventory has fallen to 1.7 months.  Although closed sales dipped, the number of homes going into escrow improved by nearly 400 units in January.

 

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Where Were the Sales?

The chart below clearly illustrates that closed sales were not consistent across Greater Las Vegas this past month.  For example, Spring Valley, Inspirada, and Iron Mountain Ranch all witnessed pronounced decreases in closed sales – even as Aliante and Mountain’s edge saw slight improvement.  Therefore, depending on the community, months of inventory for SFR homes ranges from 2 to 20 months.  It’s also clear that some communities had very short average days on the market (most notably Centennial Hills), while others such as Anthem Country Club and Red Rock Country Club were just shy of 100 days average on the market.  Some of that also suggests that some of the older inventory closed this past month.  That can also been seen by the drop in the average list price for available SFRs!

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Categories: Market Stats, MLS, political, Pricing | 1 Comment

Las Vegas Real Estate Update – January 2017

lasvegas2017-2Welcome to 2017 and the Political Challenges Ahead!

First, I want to reach out and thank Congressman Joe Heck for all of the support he has provided our REALTOR community.  Then I want to congratulate Senator Catherine Cortez Masto on being seated in the Senate as the first Latina Senator!  Now it’s time to begin reviewing Bill Draft Requests (BDRs) as we prepare for the 79th session of the Nevada Legislature that opens next month! Which bills from the 2015 Session will be revisited in one fashion or another?

Greater Las Vegas Market Overview

December 2016 Single Family Residential (SFR) closed sales were up 4.4% from November and about 1% higher than at this time last year.  The median closed sales price of a SFR dipped 2.1% to $235,000 while the average closed sales price of an SFR also decreased by 2% at $272,716.  The median closed sales price for an SFR improved by 7.48% in 2016 while the average closed sales price of an SFR increased by 9.78%.

Click Here for the Current Market Update

Click Here for Additional Las Vegas Market Update Charts

Residential closed sales units were up 8.1% compared to 2015.  SFR closed units were up $6.31%,  Condo/Townhome sales ended up 16.6% over 2015 while Hi-rise closings are up 11.4% compared to last year.  Only luxury market closed sales dipped in 2016 and by 4.13%  The last chart below shows the months of inventory for the luxury market.  A “months of inventory” column has been added to the Communities profile chart and can be found in both reports above.

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Categories: Market Stats, political, Pricing | 1 Comment

Las Vegas Real Estate Market Update – December 2016

paris-mugWhy Homeownership Needs a Trump Presidency!

Lawrence Yun is Chief Economist and Senior Vice President of Research at the NATIONAL ASSOCIATION OF REALTORS® (NAR). He recently contributed an article and opinion in Forbes titled: “How Trump’s Presidency Could Impact Real Estate”.  The challenges and opportunities that the Trump administration will face are clearly articulated in this article.  This is a “must read” for anyone with an interest in ensuring that hard working Americans regain the opportunity to achieve the American Dream of homeownership.  The past eight years has placed that Dream out of reach for far too many!

Click here to read the Lawrence Yun article that appeared in Forbes last month!

NAR recently reported that the rate of homeownership was at its lowest rate since 1965 as depicted in the chart below provided by the Federal Reserve Bank of St. Louis.  Of course, it may be worse than that as it does not appear that there is any historical data earlier than 1965.  How ironic is it that we are experiencing the lowest interest rates in our lifetime and that has only resulted in lower rates of homeownership?  We had a higher rate of ownership in 1979-1980 when interest rates were 18-21% and when it would have been cheaper to buy a home on your American Express card than by obtaining a bank loan.  Oh, there was greater inflation then and appears to be little to none now. Really? Perhaps that’s what happens when the government removes food and energy from the CPI index?

Homeownership Rate for the United States

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It seems that the rate of homeownership began this precipitous decline prior to the market peak of 2006 and before the bubble burst.  How have hard working Americans been failed by governmental efforts to fix the broken economy of the past eight to ten years? Freddie and Fannie failed! HVCC, MHA, HAMP, HARP, TRID, and Dodd-Frank efforts have all failed to improve homeownership rates.  The creation of, flawed structure and implementation of the CFPB have only exacerbated those previous failures.  Small banks are saddled with onerous compliance costs under Dodd-Frank while the “mega-banks” treat compliance costs and exorbitant fines as a cost of doing business.  The result leaves the hard working American consumer being punished for the financial sins of failed systems, legislation, governmental institutions and quasi-governmental institutions.

The two charts below show just how tight credit has become and reflects the challenges of requiring higher and higher FICO scores to obtain a loan today compared to eight years ago.  Credit is as tight now as when we were faced with 18% interest rates!  How is that even possible?  No one wants to return to the days of consumers being able to falsify incomes and only having to “fog a mirror” to obtain a loan.  Yet credit has been tightened to the point where there is virtually no risk for the lenders today.  Both scenarios are patently wrongheaded! It’s time to bet on hard working Americans rather than the failed systems that got us here in the first place.  We sorely need to move from a fragile economic recovery to a robust, sustainable recovery that puts people back to work with good wages, salaries, and better economic opportunities.

Mortgage Debt Service Payments as a Percent of Disposable Personal Income

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Household Financial Obligations as a Percent of Disposable Personal Income

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We need a new administration and Congress that can begin to turn this around as badly as we did when President Reagan took office in 1981! We need to critically reform or “nuke” legislation, systems, and agencies that have contributed to the demise of homeownership rates in America this past eight years! I am confident that 2017 will be our 1981! So let’s fasten our seat belts for an exceptional year of real estate ahead!

Click Here for more Economic Research Charts from the Federal Reserve Bank of St. Louis!

Greater Las Vegas Market Overview

November Single Family Residential (SFR) closed sales were down only 1.1% from October but 31%higher than at this time last year.  The median closed sales price of a SFR rose 3.5% to $240,000 while the average closed sales price of an SFR was improved by 4% at $278,254.  Residential closed sales remain 6.6% better than at this time in 2015.  Condo/Townhome sales are up 16.6% over 2015 while Hi-rise closings are up 10.2% compared to last year.

Click Here for the Current Market Update

Click Here for Additional Las Vegas Market Update Charts

The first chart shows that the average closing prices of and SFR have increased by 10% since December 2015 despite having trended sideways a great deal this year.  However, check out the subdivision units and price trends charts to see which communities are down and which ones are up.  Finally, the last chart shows that we have made some headway on correcting the over pricing that has permeated Las Vegas real estate market prices.

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Categories: Market Stats, political, Pricing | 3 Comments

Las Vegas Real Estate Market Update – November 2016

voted2016Please Remember to Vote Tuesday!

It may have been a challenging few years and a slow recovery for all of us, but we are not faced with the Great Depression of 1929 and the fallout that led to President Roosevelt’s victory over Herbert Hoover.  Incumbent Hoover had fallen out of favor with the electorate and only amassed 59 electoral votes in what was a bitter election year campaign. Here is Will Rogers’ commentary on election day 1932:

 

“There is only one redeeming thing about this whole election. It will be over at sundown, and let everybody pray that it’s not a tie, for we couldn’t go through with this thing again.

And, when the votes are counted, let everybody, including the candidates, get into a good humor as quick as they got into a bad one.

Both gangs have been bad sports, so see if at least one can’t redeem themselves by offering no alibis, but cooperate with the winner, for no matter which one it is the poor fellow is going to need it.

So cheer up. Let’s all be friends again. One of the evils of democracy is you have to put up with the man you elect whether you want him or not. That’s why we call it democracy.” Daily Telegram #1953, Nov. 7, 1932

 

Click Here for more Will Rogers humor on politics!

 

Greater Las Vegas Market Overview

October Single Family Residential (SFR) closed sales were down 10.6% from September but 7.5% higher than at this time last year.  The median closed sales price of a SFR dipped 0.79% to $232,000 while the average closed sales price of an SFR was virtually unchanged and remains at $267,563.  Yet, SFR closed sales are 6.6% better than at this time in 2015.  Condo/Townhome sales are up 14.2% over 2015 while Hi-rise closings are up 12.4% compared to last year.

Click Here for the Current Market Update

Click Here for Additional Las Vegas Market Update Charts

The first chart shows that the average closing prices of and SFR continue to go sideways during this period of slow market value improvement.  However, check out the subdivision units and price trends charts to see which communities are down and which ones are up.

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I look forward to seeing many of you next Saturday evening at the Bellagio for the GLVAR Installation of Officers and Directors for 2017!

 

 

 

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Las Vegas Real Estate Market Update – October 2016


wdm-2Greater Las Vegas Market Overview

September Single Family Residential (SFR) closed sales were down 5.75% from August but 7.9% higher than at this time last year.  The median closed sales price of a SFR dipped 0.49% to $233,850 while the average closed sales price of an SFR dropped 0.70%, falling from $269,222 to $267,327.  Yet, SFR closed sales are 6.5% better than at this time in 2015.  Condo/Townhome sales are up 16.3% over 2015 while Hi-rise closings are up 13.9% compared to last year.

Click Here for the Current Market Update

Click Here for Additional Las Vegas Market Update Charts

We have mentioned in previous blog posts that the Greater Las Vegas Real Estate Market continues to struggle more that many other markets with conventional financed transactions.  The first chart below shows the Las Vegas market for all price points.

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So which price points enjoy momentum in this market even as other price points are flat or falling?  Here they are:

 


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Finally,  here are how selected communities have performed over the past six months.

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Las Vegas Real Estate Market Update – September 2016

DSC_0115 - CopyNew Residential Purchase Agreement – Biggest Change in Ten Years!

It was ten years ago that we first introduced a standard Greater Las Vegas Association of REALTORS (GLVAR) Residential Purchase Agreement (RPA) that was generally adopted by most brokerages in Las Vegas. The upcoming version of the RPA introduces the most substantive changes since its adoption.  Personally, I like many of the changes, but not everyone will agree with me.  That’s okay!  Reality is that each legislative session enacts new laws that often require changes to a number of our standard GLVAR forms.  This is why a number of other states have gone to statewide forms for real estate transactions.  State associations such as the California Association of REALTORS (CAR) and the Arizona Association of REALTORS  (AAR) are the authors and keepers of those forms.  That makes so much sense as it is the state associations that tend to monitor federal, state, and local legislation and ordinances.  The attorneys in those associations then update their state forms shortly after their legislative sessions conclude.  Ten years ago we tried and failed to launch a set of statewide real estate forms in Nevada.  However, given how much the business of real estate is impacted each year by federal and state legislation, perhaps it’s time for state and local real estate leadership to review this issue.  I will gladly volunteer some of my own time if there is an interest.

Las Vegas Market Overview

August Single Family Residential (SFR) closed sales are up 9.3% from July and 8.2% higher than at this time last year.  The median closed sales price of a SFR retreated to $235,000 while the average closed sales price of an SFR dropped 2.4%, falling from $275,885 to $269,222.

Click Here for the current Market Update

Click Here for Additional Las Vegas Market Update Charts

We have mentioned in previous blog posts that the Greater Las Vegas Real Estate Market continues to struggle more that many other markets with conventional financed transactions.  The first chart below shows the Las Vegas market for all price points.

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The next charts show the contrast between conventional financing below the $250,000 price point and then for the price range from $250,000 to $750,000.

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So which price points enjoy momentum in this market even as other price points are flat or falling?  Here they are:

 

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So the price ranges from $250,000 to $750,000 are the clear winners.  Have you “Moved Your Cheese” yet and adapted to these market changes?

Have a Safe and Happy Labor Day!

Categories: Market Stats, MLS, Mortgages, political, Pricing | 1 Comment

Las Vegas Real Estate Market Update – August 2016

IMAG0021Property Management Permit Pre-Licensing Course!

Once again it’s time to shamelessly plug Americana’s Pre-Licensing Property Management Permit course – again! This course is excellent – even for those who just want to learn more about Landlord Tenant laws in Nevada.  Do you want to learn how to prevent or spot embezzlement – before it becomes a problem?  Would you like to learn foolproof techniques for reconciling your trust accounts? There are lots of “how to” for brokers and licensees who want to become property managers and do it right!  Boring is NOT a word anyone has ever used to describe this course.  Registration is now open.  See you there.

Just click here to view the course and/or register.

The class runs Aug 18th through Aug 20th.  Walk-ins are welcome on Thursday beginning at 7:30 am, Aug 18th in our Summerlin office at 10777 W. Twain Ave., Suite 333!

Las Vegas Market Overview

July closed sales are down 13% from June and 11% lower than at this time last year.  The median closed sales price of a Single Family Residence (SFR) inched up from $235,000 to $236,000 while the average closed sales price of an SFR dipped slightly, falling from $276,482 to $275,885.

Click Here for the current Market Update

Click Here for Additional Las Vegas Market Update Charts

Much of the drop in closed units was in those homes under $500,000.  Sales remained steady strong in the $500,000 – $750,000 price ranges.  The charts below will also show how the Las Vegas market compares to both Southern California and Phoenix/Scottsdale in the sale of Single Family Residence.

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CA-blogpics-july2016_Page_03The good news this month is the reduction in over priced homes:

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Let’s Take a Closer Look at the Market Value trends Phoenix/Scottsdale, Southern CA, and Greater Las Vegas !

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Categories: Market Stats, MLS, Pricing, Property Management | 2 Comments

Las Vegas Real Estate Market Update – July 2016

balloonsThe Summer and the Market are Heating Up!

Overall closings for 2016 remain 8.1% ahead of last year’s closings. The median closed sales price of a Single Family Residence (SFR) improved to $235,000 in June resulting in a 2.6% increase while the average closed sales price of an SFR nudged upward again to $276,482 representing a 1.4% increase over May and a 9.2% gain in the past two months.

Click Here for the current Market Update

Click Here for Additional Las Vegas Market Update Charts

June market momentum heated up as SFR closings bettered last month by 6.3% and June 2015 by 6.7%  Similarly,  2016 condo/town-home sales and hi-rise sales are showing strength over last year’s sales.

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blog-pics-nv-june-2016_Page_12So What Has Changed!

The Las Vegas real estate market may be recovering in a slow, but steady manner.  However, financed transactions are being concluded much more smoothly than in the past with conventional, FHA, and VA loans all participating.  The loan success rate is in spite of some frustratingly low appraisals!  Perhaps lenders, title professionals, and REALTORS have adapted to the new, ever changing TRID environment?  Either way, this is very welcome news! Check the charts below!

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Over Pricing Update!

Many homes continue to languish in a market that witnesses over pricing of approximately 60% of the SFR available inventory.  The good news is that there are signs of this market beginning to correct that problem as some of that was squeezed out this past month and over pricing is less.  Newer inventory has been priced much closer to the market and results in opened escrows within a very few days in many cases while the older, over priced inventory simply accumulates more days on the market.  Notice the days on market in some of the communities below.

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Let’s Have a Fantastic July!

 

Categories: Market Stats, MLS, Pricing, Property Management | 1 Comment

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