Happy New Year from Las Vegas!! As we are are enatering 2013 I wanted to update all of you on the state of affaires in Las Vegas Real Estate Marketand here it is : Meridian Price Increases and here is the reason why !!
The median price of resale homes in Las Vegas in November was $133,000. In 2011, the median price was $114,000. That means Las Vegas resale home market has increased by 16.6%. And while the resale market is improving so is the Las Vegas new home sales market. Las Vegas new homes sales are impressive with robust sales and increased prices. The median price of a new home is $219,285. That is the highest since March 2009. Last year the median price was $204,064 which is a 7.4% increase.
Usually this time of year which is a Holiday season we see a slow down in the new home sales market. The normal statistics would show a 50% drop in the sales for new homes, but no this year. There were 596 recorded new home sales in November. The last 4 months new home sales averaged 600 per month. That is a 39% increase over last year or 1,379 more sales. If December ends up around 600 that will end the year around 5,500 new home sales. 2012 will boost a 40% increase in sales of new homes.
With land being a major ingredient of pricing, the experts see a 10% increase in prices in 2013 as builders will pay more per acre for land. The increase in housing permits is an astounding 64% over last year. Never have we seen an increase that high.
As an example,Lennar ( one of the major home builders) bought 167 lots for $5.2 million in Northwest Las Vegas. They are on tract to purchase an additional 160 lots early next year. In some areas, land is selling for approximately $150,000 per acre which is up 10% – 20% from last year. Despite the increase in the median price of a new home, the monthly mortgage payment for a 3 bedroom home is still less than rent with the low interest rates.
Zillow reports that Las Vegas is #4 in the sellers market stats in the country. Simply stated that means low inventory, increasing prices, and less days on the market.