We recently tried to find a 4 bedroom home which is larger than 2800 square feet for less than $300,000 for real estate investors from New York who wanted to invest in Las Vegas real estate. They liked Summerlin and Southwest Las Vegas so that was the area of our search. Although our investors criteria was reasonable, meaning that $300,000 is a reasonable price for a 2800 square foot 4 bedroom home, there is not much out there.
We found only 6 home for sale listings in the whole Summerlin that were larger than 2700 square feet, I am excluding short sales. The total number of 4 bedroom homes that are priced less than $300,000 are 23, the smallest is a two story, 1967 square foot house. There are currently 11 homes that are contingent sales, 10 pending sales and 19 that have closed in the last 30 days. That puts the supply of the Summerlin homes that match our criteria to about 35 days.
Why Las Vegas foreclosures or bank owned homes are getting multiple offers?
Most of the homes that have sold in Summerlin in the last 30 days that match our criteria have sold for $90-$110 per square foot; only 17 out of 23 current listings are in this range. Now, what happens is that banks will price a few of these listing $15,000 or more below COMPS or other listings and voila, multiple offers. If the accepted high offers start to surpass COMPS for a little while, then the price slides will subside.
Southwest Las Vegas was not much better. We showed two listings in Rhode’s Ranch. One was a highly upgraded 4,100 square foot home with a gorgeous in-ground pool and spa, the asking price was $313,000 which put it at $15,000 less than any COMPS or available listings. We showed the home the first day it was listed and it already had 3 above list price offers on it and I bet the winning offer will be in the $340,000-$350,000 range. The other home which was smaller had 12 offers in two days.
If the number of foreclosed homes and condos in Las Vegas stays less than 3000-3500 homes and condos per month for a next few months, then home prices (less than $300,000) should stop sliding.