Greater Las Vegas Real Estate Market Update – September 2020

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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Greater Las Vegas Real Estate Market Update – August 2020

Market Overview – Best July Since 2009

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2020 residential closings are now only 10.7% behind 2019 as a result of July closings, which are the highest since 2009! Meanwhile,  SFR inventory dropped dramatically again to 1.6 months overall based on the market shift that has seen an increase in demand which remains unanswered by the tepid rate of listings taken.  This translates to about 3 weeks of marketable inventory due to Over Pricing – despite having made good progress in reducing it this past month.  Residential closings were up another 34.6% month over month and 4.6% higher than July 2019!  

Market Improvement

There were 4,847 residential listings taken in June – up nearly 16% from June.  The 6,964 available listings at this time is 312 homes less than last month, while the 5,460 Pended listings reflect another 3.5% increase in open escrows.  However, the 4,028 residential closings in June is a resounding 37% increase from previous months closings.  So when can we conduct Open Houses again?? Looking for listing agents to bring on more virtual tours!

The median closed sales price of an SFR jumped from $325,000 to $330,000.  Similarly, the average closed sales price of an SFR went from  $377,937 to $389,115. The SFR average sales price has risen 4.6% this year – in spite of the media gloom and doom reports. 

July simply exploded to claw back some of the previous declines in closed sales while serving to stabilize this market and fuel the momentum going forward into the late summer and fall months. 

But what really took the Greater Las Vegas real estate market by storm was the towering performance of closed sales above $700,000 and the luxury market. (See the last two charts below.) More incredibly, the luxury market just eclipsed 2019 sales and is looking strong!

 

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Greater Las Vegas Real Estate Market Update – July 2020

Market Overview – Calling All Listing Agents

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2020 residential closings remain 13.2% behind 2019 as a result of the pandemic but the market has already begun rebounding! Meanwhile,  SFR inventory dropped dramatically to 2.3 months overall based on the market shift of supply and demand and the lack of new listings taken.  There were 4,188 residential listings taken in June which is nearly the same as in May (4,124). However, residential closings were up 41.4% month over month!  So there’s really only about 1 month of marketable inventory because 53% of all SFR homes are listed well above what the market will bear! It’s time to send out an APB to find more listing agents to help replenish and build up the supply of available homes for sale!

Over Pricing

The level of over pricing The SFR Over Pricing Index dipped to 53% while the average days from list to close remained steady at 39 days in May.  So what happened?  Again, the older, seasoned, overpriced properties continued to sit without much activity, showings, or offers.  Nearly a quarter of all listings have been on the market more than 120 days without an offer. Meanwhile, the newer inventory appears to have been priced to the market and went under contract almost as quickly as they come on the market.  Months of inventory ranges from 1 months to 17 months (not counting The Ridges), depending upon the community. Localism and even hyper-localism is everything right now.

Market Snapshot

There were 4,188 residential listings taken in June – nearly flat from May.  The 7,276 available listings at this time is 993 homes less than last month, while the 5,275 Pended listings reflect another 23% increase in open escrows.  However, the 2,935 residential closings in June is a resounding 41% increase from previous months closings.  So when can we conduct Open Houses again?? Looking for listing agents to bring on more virtual tours!

The median closed sales price of an SFR jumped from $315,000 to $325,000.  Similarly, the average closed sales price of an SFR went from $337,974 to $377,937.  June simply overcame the market challenges from April and May to stabilize and find some momentum going forward into the summer and fall months. Yet, what remains noticeable is the continued contraction of closed units at price points under $250,000.

Have a Safe and Sane 4th of July 2020!

 

 

Greater Las Vegas Real Estate Market Update – June 2020

Market Overview – Extended Lockdown Edition

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2020 residential closings have fallen 12.1% behind 2019 as a result of the pandemic and changes in FHA underwriting! Meanwhile,  SFR inventory increased to 3.7 months overall based on the market shift of supply and demand, creating an ever wider variance from community to community.   But there’s really only about 1.7 months of marketable inventory because 55% of all SFR homes are listed well above what the market will bear! 

Over Pricing

The level of over pricing The SFR Over Pricing Index rose to 55% while the average days from list to close remained steady at 38 days in May.  So what happened?  Again, the older, seasoned, overpriced properties continued to sit without much activity, showings, or offers.  Meanwhile, the newer inventory appears to have been priced to the market and went under contract almost as quickly as they come on the market.  Months of inventory ranges from 2 months to 25 months, depending upon the community. Localism and even hyper-localism is everything right now.

Market Snapshot

There were 4,124 residential listings taken in May – 823 more than in April.  The 8,207 available listings at this time is only slightly less than last month, while the 4,292 Pended listings reflect a 30.5% increase in open escrows.  However, the 2,076 residential closings in May is a resounding 14% decrease from previous months closings.  So when can we conduct Open Houses again??

The median closed sales price of an SFR rebounded from $310,000 to $315,000.  Similarly, the average closed sales price of an SFR went from $361,326 to $373,974.  The fact that the Las Vegas real estate market is rebounding more than the NBA will likely come as a surprise to many home buyers and even some sellers.  Perhaps one of the largest challenges in May was the change in FHA underwriting that caused a number of home buyers to lose escrows due to the FICO score changes.  While FHA financed closings dropped to 20% of the total closings, VA closings jumped to 16% of all closings and represented 20% of the closings in the $250-400K price range.

 

 

Greater Las Vegas Real Estate Market Update – May 2020

Market Overview – Lockdown Edition

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2020 remains 0.8% ahead of 2019 at this juncture – despite the challenging lockdown we endured! Meanwhile,  SFR inventory increased to 3.3 months overall based on the market shift of supply and demand, creating an ever wider variance from community to community.   But wait . . . there’s really only about one and one-half months of marketable inventory because 54% of all SFR homes are listed at obese prices! 

Market Over Pricing

The level of over pricing The SFR Over Pricing Index rose sharply to 54%.  Yet the average days from list to close dropped to 38 days in April.  So what happened?  The older, seasoned, overpriced properties continued to sit without much activity, showings, or offers.  Meanwhile, the newer inventory appears to have been priced to the market and went under contract almost as quickly as they come on the market.  Note that ten of the communities above experienced 25 days or less to sell!  Kudos to those listing agents!!  John Joseph would be proud.

The next two charts show the over pricing quite well and demonstrate that newer listings are winning the day.

Market Snapshot

There were 3301 residential listings taken in March – 1,417 fewer than in March.  The 8,335 available listings at this time is an 8 percent increase from last month, while the 3,289 Pendings reflects a 15% decrease in open escrows.  However, the 2,415 residential closings in April is a resounding 30%  decrease from previous months closings.  

The median closed sales price of an SFR decreased from $319,000 to $310,000 – 2.8% from March 2020.  Similarly, the average closed sales price of an SFR went from  $371,942 to $361,326 – a 2.9% decrease.  Cash continued to dry up this past month, complicating the buying process somewhat at the higher market price points.  Less cash for luxury market sales potentially means more demand for jumbo loans – and those have been quite a challenge.

 

 

 

Greater Las Vegas Real Estate Market Update – April 2020

Market Overview

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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?

Market Snapshot

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.

Greater Las Vegas Real Estate Market Update – March 2020

Market Overview – 2020 Starting Off as Good as 2017!

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Special Five (5) Year Report on Selected Hi-Rise Towers

2020 remains 23% ahead of 2019 at this juncture!  In fact, this is on par with the start of 2017 and will all market segments participating in the current run.

SFR inventory dropped to 1.9 months overall fueled by an increase in closings and despite a sizable number of listings taken last month. Again, there is a wide variance from community to community – ranging from 1 to 17 months of inventory – depending upon the specific community.  The level of over pricing The SFR Over Pricing Index dropped to 45%  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!

There were 4229 residential listings taken in February in addition to the 4138 residential listings taken in January 2020.  Similarly there are now 909 more pendings than at this time last month, which represents a 19.8% increase in escrows over the previous month.

The median closed sales price of an SFR rose sharply from $305,000 to $316,000 – which represents a increase of 3.6% from January 2020.  Similarly, the average closed sales price of an SFR went from $357,004 to $371,338.  That’s 4.0% increase from January 2020.  Generally, there was once again a little more cash in the market last month but financed transactions did not seem to struggle as much this month as last month.  What did stand out was another contraction in the residential market closing at and below $250,000.  It was this combination of fewer closings at the lower price points combined with an overall market appreciation across all price points that pushed both the median and average closing prices higher.

 

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The 2020 MLB Season Openers are Straight Ahead!

Three thoughts for the start of another MLB Season:

  • Put Pete Rose in the Hall where he belongs!  Hell, make him Baseball Commissioner!
  • Ban the Houston Astros from 2020 Post Season Play!
  • Congratulations to Derek Jeter!!

 

 

 

 

 

 

 

 

 

 

Greater Las Vegas Real Estate Market Update – February 2020

Market Overview – 2020 Starts off Stronger than 2019!

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Special 5 Year Report on Selected Communities

January 2020 jumped out of the gate 24% ahead of January 2019!  In fact, this is the best start that the Greater Las Vegas residential resale market has experienced since January 2012.  January 2020 SFR closings were down 12.57% from December but up 25% up from January 2019.  

SFR inventory held steady at 2.3 months overall despite the decrease in closings – primarily due to the large number of listings taken last month.   There were 4138 residential listings taken in January compared to 2,646 residential listings taken in December 2019.  Similarly there are now 922 more pendings than at this time last month, which represents a 25% increase in escrows over the previous month.

Again, there is a wide variance from community to community – ranging from 1 to 51 months of inventory – depending upon the specific community.  Please review the attached five year special report for selected communities

The level of over pricing The SFR Over Pricing Index dropped to 54%  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! But note that the average amount that each SFR is overpriced increased by nearly $4,000.

The median closed sales price of an SFR closed at $305,000 which represents a drop of 2,5% from December 2019.  Similarly, the average closed sales price of an SFR went from $369,314 to 4357,004.  That’s 3.3% decrease from December 2019.  Generally, there was more cash in the market last month and it seemed that financed transactions struggled to close more than previously.  Add to that a small spike in REO sales as this niche seems to be gasping for life in the short term. 

 

 

Spring Training Begins in Just Over One Week!

Three thoughts for the start of another MLB Season:

  • Put Pete Rose in the Hall where he belongs!
  • Ban the Houston Astros from 2020 Post Season Play!
  • Congratulations to Derek Jeter!!

 

 

 

 

 

 

 

 

 

 

Greater Las Vegas Real Estate Market Update – January 2020

Market Overview – 2019 is in the Books!

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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.

 

 

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Greater Las Vegas Real Estate Market Update – December 2019

Market Overview

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November 2019 SFR closings were down 17.5% from last month and up 4.5% up from November. The overall residential resale market (including residential, high rise, and multi-family sales) continues to improve this month and is now only 2.7% off the 2018 numbers.  We are just over 39,000 resales closings year-to-date and on a pace to close between 42,000 and 43,000 resale units this year. Downward price pressures in this market have held year to date appreciation of Single Family Residential home to 5.2%.  So – despite challenges with lending, appraisals and affordability issues, the Las Vegas real estate market is rebounding from a poor start to 2019 and is looking to finish stronger than we might have expected.  

SFR inventory increased to 2.9 months overall due to an decrease in closings and another sharp drop in listings taken.   Only 3,464 residential listings were taken in November compared to 4,589 listings taken in October.   Again, there is a wide variance from community to community – ranging from 2 to 14 months of inventory – depending upon the specific community.  The level of over pricing The SFR Over Pricing Index rose to 71% with 34% of all inventory having been on the market for more than 90 days without an offer.

The median closed sales price of an SFR remains flat at $307,000.  However, the average closed sales price of an SFR jumped 2.6% from $356,418 to $365,561.

 

 

 

 

 

 

 

 

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