Las Vegas Market Update – June 2013
It’s Hot Again – Are You Drinking Enough Water?
So how much water should I drink every day? It’s not what you think – it’s not the 8 glasses per day. One the low end: take your weight in pounds and divide by 2. That’s how many ounces we should drinking in a normal climate. It’s actually recommended that in this weather we should drink as much as one ounce for each pound we weigh! Oh yes! I do understand the consequences! But seriously – please stay hydrated and drink plenty of water while you are out showing homes this summer.
The Current Las Vegas Market
Single family residential (SFR) closings for May 2013 are on par with last month, but YTD closings gained enough that total closed units only lag last year by 12.9%. SFR median closing prices rose another 1.8% this month with the median closing prices of an SFR now at $170,000. Both the SFR median and average closed sales prices have risen 33% in the past twelve months.
Las Vegas Market Closings and Momentum
REOs continue to drift sideways, while short sales continue to plummet in earnest. Short sales make up only 32% of the current closings, but look for that to be in the 15% range by the end of the year.
However, one of the most dramatic shifts is in the high end market in the $1 – $5 million dollar range. Just a short two years ago Las Vegas had in excess of a three year inventory of luxury homes; However, there is now only an eight month supply of inventory in this price range – making it a more stable market segment with a lot of activity.
Las Vegas Closings by Property Type
How Does Las Vegas Compare to Phoenix/Scottsdale?
The Phoenix charts show that the Phoenix/Scottsdale market is recovering about six months sooner than Las Vegas. The most notable – and hopeful sign – is that conventional loans now make up 38% of the monthly closed sales in that market compared to 25% in Las Vegas.