Here are comments I submitted to a relo company today when asked to do a second opinion on a home on the market with a very competent agent at CB Premier.
The subject is a very nice home; well maintained in side and out. Any buyer could move right into this unit. Positives are condition, "feel", location in community, and community itself. Negatives are living room is small and not very functional, backyard privacy is limited and backyard itself.
The financial market has become a train wreck and half the buyers became renters at the end of July. The rental market had the best 30 days in more than 2 year with new leases -1556 new ones signed last month alone-200 more than recorded resales for the same period. I am attaching a Market Snapshot that I produce each week and is distributed among the REALTORs and news communities.
The last 30 days have had the LOWEST number of Closed sales in more than 5 years. The number of Pending sales is at the lowest point this year, a 44% drop in activity since just the beginning of the year. Listing inventory is at an all-time high (up 46.6% since Jan 1) and more than 45% are vacant. Last week the number of REO listings increased by 8% in just 7 days! REO and Shortsale now comprise an estimated 20% of the available listings in the immediate Las Vegas market. Market declines in median price are 8.8% for current 12 months for a 1500sf home. Currently there is a 21 month supply of homes on the market, an increase of 6 months supply in just the last 60 days.
Specifically to zip 89012, DOM in the immediate area for sold homes are 75. BUT, current Pending sales are 102 DOM - an incease of essentailly one month. The market is tanking. Year to date-for every 4 houses listed only 1 is selling. A seller looking to move home in 60 to 90 days has a 1 in 16 chance of that happening. Price is king.
In the immediate market of the subject REO is commanding since July 30. Last month Repos accounted for 5% (verifiabled but suspected to be 10%) of all listings on the markt. In the same month, repos accounted for 18% of all closings. Comparable or not, they are selling and driving down prices. Sales closed prior to July 30 are prices that never will be attained in the next year as lending criteria has eliminated many of the buyers in this price point. From community to community, the homes under contract are those at the bottom of the deck - lowest price in the subdivision or best dollar/sf. With a 4% tumble in median price in just the last 30 days for this size home, pricing AHEAD of the market is critical - Incentives are nice and 50% of the homes sold did so with an average of $9000 in incentives. But it is still the lower priced homes in any neighborhood that are selling. Best price for best condition, period.
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