Existing Homes: The Las Vegas market has been experiencing record low levels of inventory, as a direct result prices are on the rise. With a year over year increase in sales price of 10.3% (June 2016 to June 2017) it has created a fantastic market for Sellers. With Las Vegas home values escalating at a rate higher than the national average of 7.4%, this is a fast-pace market for Buyers, with homes staying on the market well below the national average (See Days On Market graph for more information). For the first time in 2017, June experienced a very small increase in inventory levels. There were 5,174 units available at the end of June, 4.1% more than May. It is expected that the remaining of 2017 will see prices continue to rise, at a slower rate. It is very critical for Buyer’s to have a full time professional agent working and fighting for them in this fast-paced market.
Close to 70% of homes and 75% of condos sold in under 30 days. June sold 3,584 homes and 784 condos, an increase of 1.9% for home sales and .5% increase of condo sales from May. June experienced an increase of new listings by 1.9% from May and 34.1% increase from June 2016. That year over year number is an impressive figure. These new listings are comprised of Sellers who have been waiting for prices to rise and investors turning properties which they acquired during the downfall. Many of these properties have been remodeled, some with what we like to call lipstick, and others have been fully remodeled providing Buyers with more modern features and finishes.
New Home Sales Activity: Summerlin and Inspirada ranked as the top ten masterplan communities in the US, selling 470 and 391 homes respectfully the first half of 2017. Cadence falls within the top 25. (According to a report by Bethesda consulting firm RCLCO). Home Builders Research is reporting that builders are experiencing an average of 200 net sales a week. The majority of new homes sales activity is occurring in Henderson and the Southwest submarket.
Multi-Family projects do not seem to have an end. In 2017, many new large multi-family construction projects were announced, with one of Nevada’s largest apartment projects to be located on Las Vegas Boulevard South. Five new high rise projects were also announced, however, all five are not expected to proceed to construction.
Interest Rates: Most analysts predicted Federal Reserve rates to rise in the months of March and June. The markets like predictability, therefore, we have not seen a lot of turbulence in rates. However, rates did rise in the 1st quarter of this year. Where are mortgage rates headed for the remainder of 2017? According to Bank Rate’s survey of a panel of mortgage “experts” (mortgage bankers, mortgage brokers and other finance experts) 43% anticipate rates to rise and 57% expect rates to remain unchanged, 0% predict a lower rate. The last part of June and into July rates rallied to their highest level for this year. At the time of the survey, the national avg. for a 30 year mortgage rate was 4.16%, for those of us who have bought or sold real estate over the last few cycles, a mortgage rate at 4.16% is still an exceptionally great rate for the majority of buyers.
Job Growth: This is one of the most significant economic factors affecting real estate. Jobs surged nationally in the June 2017 jobs report, with an addition of 222,000 jobs, breaking most forecasts. Nevada’s May report on Job Growth shows Nevada with a year over year growth rate of 2.7%, whereas the national rate was 1.6% for the same period (according the Nevada Department of Employment). Health Care is producing the largest amount of job growth nationally. Nevada is expected to see a rise in health care related employment this year as well. The Las Vegas Convention Center is reporting visitor volume for 2017 at 0.3%, and gaming revenue is up 3.5% year over year.
Summary: 2017 has been a good year for The Las Vegas housing market with most homeowners seeing appreciation in their home values. We anticipate that prices will continue to rise at a slower rate for the remainder of 2017 and expect inventory levels to rise slightly. However, we will still be in a housing shortage for the remainder of 2017. The affordable housing sector, homes under $200,000, will be a challenge to obtain this year and this appears to be the trend for the foreseeable future. The answer for affordable housing will be an increase in average salaries, resulting in Buyers qualifying for higher loan amounts.
Buyers: It is critical to have an Agent who is tenacious and experienced in today’s market conditions, and working full-time for you to find the right home. Not all offers are created equally, even at the same price. So, having an Agent who knows what it takes to get your offer accepted, and is willing to do the work for you, is critical to the success of obtaining a home in today’s market.
Sellers: The market is up and many are looking to capture their equity in their current home and upsize or downsize. An executed, strategic marketing strategy can make the difference between thousands or tens of thousands of additional return on the sale of your home. Putting the home on the market with minimal marketing may get the home sold, but it will definitely not maximize your greatest return. Real Estate marketing changes constantly and we spend the time and resources necessary to ensure our client’s homes are marketed to the fullest potentional and get maximum exposure to the buying market. Obtaining multiple offers provides our clients with options that best work for them and provide a greater return.
I hope this provides a little hope to those of you frustrated and looking for the next place you and your family will call your home.
Your Crown Point Real Estate Professional is looking non-stop and tirelessly to find you a home.
Here to Service Your Real Estate Needs,