This is the video transcript of rocketing prices in a strange Las Vegas real estate market video, to see the post with embedded video please click here
Before we discuss the Las Vegas real estate market for June 2017 here are some mind-boggling homes, condos, and townhomes median price appreciation since January 2016 and January 2017.
|Median Price of Las Vegas homes, condos, town homes||Single Family Homes||Town homes||Condos|
|May , 2017||$250,000||$185,000||$113,000|
|Median price appreciation|
since January 2017
|Median price appreciation|
since January 2016
The median price of Las Vegas homes is up by 15.2% from January 2016 and 6.4% from January 2017. But when it comes to townhomes their median price has appreciated by 23.3% from January 2016 and 13.5% in the past 5 months. The median price of Las Vegas condos is up by an eye-popping 30% from January 2016 and 19% since January this year.
In the rest of this video, we will explain the reasons for these amazing price gains and talk about what we expect to happen in the Las Vegas real estate market in the future.
Let’s discuss the extremely low inventory of homes, condos and townhomes listing
This graph shows the historical inventory of Las Vegas homes and condos and townhomes. See how the inventory of single-family homes, which was tight already, has nosedived in 2017. While the inventory of home listings should rise in the spring and summer, as of June 15th it is at 5073 home listings in the MLS which is 34% less than January 2017 inventory.
As for condos and townhomes, we have 635 listings in all price ranges which is about half the inventory of only 5 months ago.
But the deal is that we are talking about abstract statistics, let’s translate it to English.
This is the map of the City of North Las Vegas with the population of more than 230,000.
As of June 15th, we have 9 active condo listings which are not under contract in addition to 12 active townhome listings. This is non-existent listing inventory.
|Condo listings in Las Vegas MLS||Town home listings||Single Family Home listings|
|City Of North Las Vegas listings||9||12||402|
This is the map of the City of Henderson with the population of 277,000.
We have a bit more inventory there
|Condo listings in Las Vegas MLS||Town home listings||Single Family Homes|
|City of Henderson for sale listings||49||65||1091|
However, if we combine the two, imagine a city with the population of 500,000 with less than 60 condo listings and 80 townhome listing with strong demand. What do you think will happen? The answer is double-digit price appreciation in less than 5 months.
Now that we discussed the supply side, let’s discuss demand
Increasing demand in a tight Las Vegas real estate market
As you can see the year to date sales activity for homes is up by 10.6% from the past year while the same for condos and townhomes stands at 12.3%. However, these numbers are much higher for May because now we are starting to get a rush due to escalating prices.
Put the much lower inventory with stronger demand and you get rising prices.
Median Price escalations:
This graph confirms what we showed in the beginning. The median price of Las Vegas homes is at $250,000 which is 9.2% higher than last May. However, the combined median price of condos and townhomes is 24% higher than May 2016.
Please check the bottom graphs, there is no letup in escalating prices and if anything they are accelerating. As we discussed above, this is due to a seemingly biblical listing famine.
If these price gains were based on normal inventory levels, we would tell you to buy all you can. But these price appreciation are based on a starving market. In short term, we shall see more price hikes and another 10% by next June is not out of the question, but long-term is suspect.
The reason that we don’t publish a housing market report every month is that there are only so many ways of explaining price gains due to the shortage of listing inventory.
Back in December, we were the first and only Realtor who accurately predicted the current housing market in the overview of Las Vegas real estate market in 2017. In the next video called buying Las Vegas homes in July could cost 10% more than now. We even told our viewers when the price appreciation will come and by how much and recommended that they buy before March.
In that video, we talked about how buyers who want to buy a home that is priced below the FHA loan limit of $287,500 will run into a buzz saw fight with multiple offers and rejected offers. Well, the Las Vegas real estate market got ahead of us and if you can buy a home that was selling for $200,000 in 2016 for $220,000 now, you have done very well.
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On behalf of Saber Team, this is Karen Saberzadeh of Realty One Group and www.lasvegas4us.com/wordpress/ wishing you a great day.