Las Vegas Real Estate Trends and Area Housing Market Report for October 201611/18/2016
Las Vegas Real Estate Trends and Area Housing Market Report for October 2016
The Southern Nevada’s housing market, the housing supply remained tight with respectable sales volumes and continued appreciation on a year-over-year basis.
Leaders of the Greater Las Vegas Association of REALTORS® (GLVAR) and UNLV’s Lied Institute for Real Estate Studies aren’t buying into recent news reports wondering if the housing market could be headed for another bubble.
Dr. Ed Coulson, PhD, Director of the Lied Institute for Real Estate Studies and Professor of Economics at UNLV, cited three major factors that make a housing bubble unlikely.
First, he told a group of GLVAR members during a Nov. 8 meeting at the association, Southern Nevada has a very tight housing supply, unlike market conditions leading up to the Great Recession and the housing downturn that accompanied it. Secondly, he said local home prices have been stable for many months, not rising rapidly like they were during the housing boom a decade ago. Finally, mortgage interest rates are near historic lows, helping housing affordability.
Coulson sees “no price bust or price boom.” Rather, he said, “Everything in Las Vegas is in an equilibrium.”
GLVAR President Scott Beaudry agreed, saying GLVAR’s local housing statistics paint a picture of unprecedented stability.
According to GLVAR, the total number of existing local homes, condominiums and townhomes sold in October was 3,225. That was down slightly from September, but up 5.5 percent from 3,057 one year ago. Compared to the same month one year ago, 6.7 percent more homes, and 6.1 percent more condos and townhomes sold in October.
So far in 2016, Beaudry said Southern Nevada is on pace to sell more existing homes than during 2015 and during 2014, but fewer than during each of the previous five years.
Homes have also been selling faster this year. Compared to one year ago, the number of days single-family homes stayed on the market before selling during October decreased 20.7 percent, from 58 days on the market in October 2015 to 46 days in October 2016.
The sales pace was faster for condos and townhomes, which saw a 35.7 percent decrease in the number of days these properties stayed on the market during October 2016 compared to the same month one year ago, going from 70 to 45 days on the market.
The effective months of inventory for October 2016 were 3.0 months, up 2.5 percent from September 2016 which was 2.5 months and down 3.4 percent from a year ago which was 3.4 months. A six-month supply of homes would be considered a balanced market. So, we are still in a sellers’ market.
The medium price for Condominiums and Townhomes for October 2016 was $117,550 up 2.2 percent from September 2016 medium price of $115,000 and up 12.0 percent from October 2015 which was $105,000. Sales volume for Condo/Townhomes for October 2016 was 554 down 9.8 percent from September 2016 of 614 and down 4.8 percent from a year ago which was 582.
The effective months of inventory for October 2016 was 2.2 months up 18.8 percent from September 2016 which was 1.9 months and down 43.5percent from a year ago which was 4.0 months.
On the Unemployment front:
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