Las Vegas Real Estate Trends - July 2017
The results are in for July 2017! Another great month for real estate in the Greater Las Vegas area.
As is the case in most parts of the country, inventory is still very tight. There just are not enough homes on the market to satisfy buyer demand. While inventory increased 150 units from this same time last month (June 2017) and it has increased slightly two months in a row (May to June & June to July), inventory is still down 34% from this same time last year (8,792 to 5,786).
One interesting thing to point out in the numbers is this—inventory is down 34%, so obviously, there are fewer homes on the market and pendings (homes under contract) are also down year over year by 13% (6,657 to 5,760). However, closed units have increased year over year! Fewer homes on the market and fewer homes “ready to close” but still an increase in closed units by 9% year over year (3,375 to 3,686). That is a statement of just how strong home buyer demand is at this time.
Bank owned and short sale homes have dwindled to a very small component of the Las Vegas market. There are only 95 bank owned homes and 172 short sale homes for sale. That is merely 4.5% of the entire available inventory.
“All cash” transactions occur in 1 out of every 4 real estate closings in Las Vegas. Conventional loans are nearly half of the market (46% of all closings involved a conventional loan) and FHA and VA loans were 19% and 9% of the market respectively.
Sixty four percent (64%) of all closings occur in the price range between $200,000 and $500,000. Forty percent of all closings occurred between $200,000 and $300,000. That is the most active price range in the market. Only five percent (5%) of all closings in Las Vegas in July were above $500,000. Nice homes priced under $300,000 are not on the market but for a few days, if not more like a few hours. It is very competitive at these price points.
Not included in this report, but also significant to note is that our new homes data indicates a very strong 2017 for Las Vegas’ new home builders. Record sales occurring all around the Las Vegas Valley. Certainly, the shortage of supply in the resale homes market has driven many to consider a new home instead. Though, with new home prices as much as 25-35% higher than similar resale homes, and prices of new homes still increasing, how long can this last?
That’s all for this month. If you would like additional information or have questions or comments about our data and/or analysis, please do not hesitate to contact us.
Have a great month!