Below is information on the current state of real estate market activity in the Las
Vegas area. Also included are some of my personal observations. I hope you find this helpful.
Resales
Inventories remain unusually low with about a 1.3 month supply of homes at the current rate of sale. There were 3,642 closings in June compared to 3,884 in May. In June of last year there were 3,945 closings Closings are actually down even compared to the depth of the recession. There were 4,702 closings in June of 2009.
New homes
Sales jumped 31.2% over June of last year. There were 3,770 building permits pulled in the first half of this year. That is a big increase, but is nothing compared to the pre-recession averages of 3,000 to 4,000
A month.
Prices are up
From June 2012 to June 2013 there has been a 24.6% increase in the median selling price of a free-standing home.
General observations
As a result of price increases of the last 12 months, at least in my opinion, I can say that things are picking up with respect to some of the delayed or cancelled projects around the valley. I see the Blue Heron development off of Horizon Ridge Dr. in Henderson is now active again. The Old Manhattan West project on the west side is now active again under another name. The long delayed Summerlin Center project is now showing signs of activity. That is really good news as that construction site has been a a real eyesore and a living example of the real estate collapse of a few years ago. Mortgage rate increases may slow the price increase somewhat but they are still much lower than historical averages.
The future
Due to the inventory situation and with still favorable interest rates I expect prices to continue a slow increase in the short term. Beyond that it is anybody’s guess. There are really too many variables, at least in my opinion, to make a accurate forecast. That’s it for now!
