New Year, New Housing Stats

new trends in the Las Vegas real estate market for 2015

Hello Everyone!

Having a REALTOR who is up-to-date with the market makes all the difference. Whether it’s to get the best deal when purchasing a home or to get top dollar when selling it! Kandis and I pride ourselves on our obsession to keep current with the trends to give our clients a valuable advantage.

With the 2014 year-end data in, we wanted to touch on a few topics of conversation to help inform everyone on the latest in the Southern Nevada Real Estate market.

1) Market Prices – The Median Price of a Single Family Home for 2014 ended at approximately $199,900. That’s an increase of nearly 11% in just one year! With many investors leaving the market because of the increases (cashing out), traditional Buyers are back in the mix. While the prices have somewhat stabilized we should see a much more “normal” pricing increase of 1%-3% in 2015 as inventory remains low.

2) Housing Inventory – As noted above, the housing inventory is still incredibly low. In a healthy housing market we should have somewhere around a six-month supply of homes. Currently we’re less than a three-month supply of inventory. With an average of 2,500 single family residences exchanging hands each month there are only 6,758 currently for sale in the Las Vegas Valley. So, in effect, there’s really not enough supply to keep up with the demand!

3) Interest Rates – Record low interest rates are still happening — but for how long?! Banks have loosened up on their underwriting guidelines and are lending money once again. As of today a 30-year Conventional Loan offers an interest rate as low as 4.15% and an FHA Loan at 3.35% for 30 years too…. with as little as 3.5% down! We don’t know how long these ultra-low rates will be around so now’s the time to take advantage.

4) New Home Construction – New home construction has slowed down dramatically as the housing inventory for the resale market increased in 2014. The other factor is that Builders are asking for more per square foot on their base models than the price of most resale homes. They’ve adjusted their prices slightly, but to counter that they’ve withdrawn a majority of Buyer incentives such as free appliance upgrades or closing cost help.

5) Short Sales and Bank Owned – Is there a bigger misconception in our market than these two types of sales? Probably not! Short Sales make up less than 15% of the homes currently available and, with banks offering loan modifications or other government assisted foreclosure alternatives, short sales are less and less common these days.

Bank Owned properties make up less than 5% of our market and their prices are typically higher than the average resale comparable homes sold. Why is that? How can that be? Well, there are government programs (Homesteps and Homepath) that have looser lending rules, and which allow Buyers to work around appraisal contingencies. This essentially allows them to borrow more money than these homes are worth, so the banks increase the prices to compensate for the programs.

As always, I hope this blog helps and if Kandis and I can help answer any questions just Call/Email/Text us anytime!

Mike Rebarchick


Las Vegas Strip photo by: nanpalmero

Vegas Home Prices Are Up 23% Since Last January

the Las Vegas mountains behind rooftopsA new report from the Greater Las Vegas Association of Realtors showed that the median price of an existing single-family home in the Las Vegas valley was $185,000 last month, which is up over 23% from January 2013. Condominium and townhome prices are up by nearly exactly the same amount, increasing from $75,000 to $96,000 in the past year.

The report also highlighted a few significant changes in the local market, including a switch from “distress” sales to traditional sales in which no banks are involved. In 2013, traditional Las Vegas home sales increased by 25% compared to 2012.

This report reminds home owners that they now may have the option of the traditional sale. With home prices increasing at this magnitude, these folks went from being in a position where a possible short sale or loan modification may have been their only option to now actually being able to sell the property and walk away with money in their pocket.

They’re no longer a prisoner of being “upside down” in their home loan and forced to stick it out. The weight off of their shoulders should help them sleep a bit better at night!

Another plus is that interest rates are still hovering around record lows so there are buyers out there looking to buy their first home as opposed to renting. There are also situations where families that are in need of upgrading their current living conditions are able to do so now.

The report also shows that short sales have slowed down significantly in the valley, with the trend beginning even before the Mortgage Forgiveness Debt Relief Act expired on December 31st. In 2013 short sales accounted for less than 10% of the overall monthly real estate transactions.

The bottom line is that home owners who have to short sell their home still can still do so. They just need to discuss tax options with a knowledgeable CPA who can assist them with taking advantage of other tax laws that are now available to off-set the loss of the Mortgage Debt Relief Act.

You can learn more about the new Vegas housing report here: GLVAR reports home prices started 2014 where they left off in 2013




LV Photo by Sarah Nichols