Las Vegas real estate market 2018 will witness low supply of listing inventories and further price gains
Las Vegas real estate market in 2018 will be a continuation of 2017 when the median price of Las Vegas homes witnessed another double-digit gain. The median price of Las Vegas condos and townhomes has appreciated even more. In this video, we will discuss the reasons for it as well as making a prediction for 2018.
In Prediction & Overview of Las Vegas real estate market in 2018, we will talk about
1: Severe shortage of active listing inventory of homes, condos and townhome listings that are listed in the MLS
2: Significant increase in sales activity
3: How much increasing sales numbers and decreasing listing inventory has affected the median price of house, condominiums, and townhomes, especially for condos.
4: Effect of foreclosures and short sales on the Las Vegas real estate market 2018
5: Finally our prediction
As in the past year, severed shortage of active inventory of listings in the MLS along with the shortage of auction properties will be the dominant factor in 2018.
As you see in this graph, while the listing inventory of Las Vegas homes for sale for December 2017 is 46% below previous December, the 12 months rolling average listing inventory is down by 29.1%. The listing inventory for Las Vegas condos for sale is down by 42% from the past December and 40.5% for the year.
Please pay attention to the downward trajectories of the second graph as well.
But a better measure is the months of listing inventory because it is calculated using the sales numbers as well. As you can see it is down to 1.5 months for single-family homes and as for condos and townhomes, it stands at 1.2 months. Keep in mind that a 6 months’ supply of listing inventory is considered normal.
At the same time, Las Vegas home sales for 2017 has been up by 7.6% and condo and townhome sales were up by 8.2%.
The law of supply and demand holds supreme. The median price of Las Vegas homes stands at about $270,000 at the end of 2017 which is 14.9% higher than the past December. The combined median prices of Las Vegas condos and townhomes stands at $144,500 which is an eye-popping 27.9% higher than January 1, 2017.
Separating Las Vegas condo and townhome real estate market
We said that the combined median price of condos and townhomes gained 27.9% higher than the previous year, however, condos and townhomes have not appreciated uniformly and the lion share of appreciation goes to condos.
As you see in this graph at the end of 2017 the median price of Las Vegas condos was $128,000 which is a truly eye-popping 34.9% higher than January 1, 2017.
However, the median price of Las Vegas townhomes at $184,500 has gained 12.4% in 2017, resulting in the combined median price gain of 27.9%.
The effect of Las Vegas foreclosures and short sales on the Las Vegas real estate market
A few years ago foreclosures and short sales were the dominant factors in the Las Vegas real estate market. However, the shrinking number of foreclosure and short sale listings brought upon by increasing prices has sharply reduced their effect on the real estate market to the point that it is negligible.
Of 34,351 single family homes sold in Las Vegas in 2017, only 3.3% were foreclosures and 3.6% were short sales. Of 4,702 active listings, only 5.4% are bank owned homes and 5.1% are short sales.
Of 3,795 condos and townhomes sold only 1% was foreclosures and another 2.3% was short sales. While .4% of condos and townhomes listings are foreclosures and another 2.1% short sales. The vast majority of these are in lower price ranges and discounts gained from these aren’t enough to have any effect on the market.
Our prediction of the Las Vegas real estate market 2018
While there are predictions that the number of active listings will go up in 2018, so far we don’t see any sign of it. If anything, the trajectory of the listings is still downward. As long as this trajectory is not going upward, price gains will continue. However, condos will not appreciate as much as in 2017.
Remember that these price hikes are not organic and are the result of the severely low supply of active homes and especially condo and townhome for sale listings.
Additionally, throngs of real estate investors who have made great profits on their investment have itchy trigger fingers and if there is a good reason to sell, will sell in mass. In that case prices will come down, however, we seriously doubt that they would come down to the current market levels.
It is still a good time to buy Las Vegas homes, condos & high rise condos.
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This is Karen Saberzadeh of Realty ONE Group and www.lasvegas4us.com wishing you a great day.