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We are willing to bet that most home buyers don’t know that buying a home in Greater Las Vegas in July, when schools are out could cost them about 10% more than if they bought it in February 2017.
To show why we discuss:
1: Inventory of active Las Vegas home listings in the MLS is down sharply in the past few months in a very tight Las Vegas housing market. Listings that are not under contract are called active listings.
2: We show the median price of Las Vegas houses versus sales activity for 2014, 2015 and 2016 to show that median prices for Las Vegas homes for sale start to appreciate in February and end in July after which prices remain flat.
3: We talk about why home prices below $300,000 should be up by 10% by July 2017.
If you want a comprehensive discussion of the Las Vegas housing market please watch Overview of Las Vegas real estate market in 2017.
Let’s briefly discuss Las Vegas housing market statistics for January 2017
Active inventory of Las Vegas home listings in February 2017
|February 2017||All home listings||Homes priced below
|Active inventory of Las Vegas|
homes listings in MLS
|Home sales in January 2017||2093||1551|
|Active inventory by month||2.8||1.67|
January 2017 numbers are in and the median sales price of Las Vegas homes came in at about $240,000 which is the highest since the real estate recovery. Active inventory of houses for sale listings in the Las Vegas MLS was 6465 listings at the end of January but dropped to 5840 listings by February 10th. 2093 houses were sold in January which puts our inventory at 2.8 months.
However, 70% to 75% of home sales are priced below $300,000. And the active inventory of home listings for these is at about 1.7 months which is extremely low. This is a very scary number for buyer’s agents here.
Median price of Las Vegas homes versus active home listing inventory in the Las Vegas MLS
This chart shows the median price of Las Vegas homes since 2014 versus the number of active home for sale listings in the Las Vegas MLS.
Please note how the active inventory of Las Vegas home listings in the MLS has nosedived in the past few months and the inverse relationship between median sales price and listing inventory.
Now let’s talk about why buying a home in July should cost at least 10% more than now
Next graph shows the median price of Las Vegas homes versus home sales in 2014. Please pay attention to median home price appreciations. Also, note that sales for each month mostly represents offers that were accepted 30-45 days prior to closings.
Median home prices in Las Vegas was at $185,000 and after price appreciations, in the subsequent 4 months it reached $200,000 and then prices fluctuated in a narrow range for the rest of the year.
Also, note that home sales in Las Vegas increase significantly in March and start decreasing in October. March is coming.
The next chart shows the same in 2015. Again, we started the year with the median price of $200,000, first price gain was in February, followed by bigger price gains until June when the median home prices in Las Vegas reached $220,000 and then it stayed in a narrow range. Buying in June cost the buyers about 10% more than it would have in January.
This chart shows the median price of Las Vegas homes versus home sales in 2016. Like the previous years the first home price gain came on time in February to $224,000 and by June it reached $235,000 and stayed in a narrow range until November 2016 and then we had what some call an unexpected price gain in November 2016 to $240,000 which was repeated in January 2017.
For an explanation see the median price of Las Vegas homes versus active inventory of listings in the Las Vegas MLS. This was due to a significant reduction in Las Vegas homes for sale listings since October 2016 and is responsible for this unexpected significant median price gain.
The demand for Las Vegas homes for sale will go up significantly in March as in the past couple of years. However, the number of active listings is far below past February.
Las Vegas home buyers that want to buy a home that is priced below $300,000 will run into a buzz saw. Multiple offers are guaranteed for houses that are priced correctly and it will take an experienced Las Vegas Realtor who has been through this situation before and we have. We know how to get offers accepted in this kind of market.
Given the above facts, we see very quick home price appreciation for the next 4-5 months culminating in at least 10% home price gains for homes that are priced below $300,000 that cover most of FHA mortgage deals. Remember we said at least 10%, higher price gains are probable.
More expensive luxury homes that need jumbo loans will appreciate as well. However, it will be much less than houses that can be purchased with an FHA loan.
We didn’t even mention probable increases in the interest rate for mortgage loans. Be warned that if interest rates increase by 1%, it is like home prices appreciating by 10% as far as mortgage payments are concerned.
Now you can see why we say that if you want to buy your home when the kids get out of school, it will cost you an extra arm and a leg. If you want to buy a home in Las Vegas do it now. Just pick up the phone and call us at 702-478-7800, we will handle the rest.
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If you want to buy or invest in Las Vegas homes, condos or townhomes, please call us at 800-762-4917. You can find our contact info and website and blog links in the video description.
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On behalf of the Saber Team, this is Karen Saberzadeh of Realty One Group and www.lasvegas4us.com wishing you a great day.
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