Thursday, November 9, 2017 / by Geoffrey Zahler
Wanted to give some updates and insights into the Las Vegas Real Estate market as we head into the last 60 days or so of the year.
Yes, we're now less than 10 weeks until we ring in 2018, and it's been another very strong year for the Las Vegas Real Estate Market. Zip Code by Zip Code, area by area, have seen price improvements all year, and at least right now, we do not anticipate any slow downs into 2018. What we ARE NOT seeing (which is a good thing) is this double digit, annualize gains, like we had seen when we came off the lows in 2009-2010. A more sustainable growth rate is better for our long term market stability.
The Median Sales Price for Single Family homes in the Greater Las Vegas area is up to $251,000, up from $228,000 this time last year, which is an increase of just about 10%. If you take ALL properties into consideration (condos, and townhomes as well), the Median price is $231,000, which is 11% higher than same time in 2016, so yes, we are seeing significant value increases across the general marketplace.
The biggest change in housing values does not have to do with the Vegas Golden Knights, the Raiders moving, or the legalization of recreational marijuana, despite what you may hear from a neighbor or friend. The big play we're are seeing is simply the lack of inventory of available homes for sale in the market. There are currently only about 7000 homes for sale, which, at this time last year, the market had almost 10,000 available homes for sale. Thats a decrease of 26%, year over year, and as my economics teacher stressed my first semester of my Freshman Year, prices are driven by none other than Supply and Demand. When we have a considerable less AVAILABLE for sale, the price, under normal circumstances, shall rise, and that's exactly what we have been seeing.
Part or the reason we are seeing less homes available for sale is people are simply staying put longer. We are seeing less "move up" type buyers, and more retirees holding onto their homes rather than choosing to "downsize". Please note, this is not saying ALL people are choosing not to move, because we are seeing plenty of sales of course, but in general, there has been a significant shift, that equates to a 26% decrease in inventory levels.
So does this mean it's a good time to buy or a good time to sell? The answer to that questions is always, "It Depends." What are you looking to do? Are you looking to buy a larger home for the family? Are you looking to pull some profits and equity out of a home and downsize? Are you renting and spending too much money every month that is going to someone else and not your mortgage or your best interests? Are you relocating either here, or away from here, and need to be moved quickly? Any agent, when asked the question, "How's the Market?" Should give you an answer similar to what I just wrote above. Those are the Agents that understand everyone has different needs, and that the answer of "Market is great" really doesn't mean anything in 2017, when we all have a thirst for more knowledge.
I'll continue to update you with thoughts, stats and other relevant information that you may find useful as you search for your next dream house here in the Las Vegas area!
Until Next time!