Leaning towards a seller’s market in 2017
We are seeing a very positive trend appearing in November, 2016. Inventory, which is the number of resale homes available for sale at this moment in time, is at its’ lowest since October of 2013. This is not just a seasonal low. When we compare the inventory from November of 2016 to the previous Novembers we are 16% under November 2015, and 26% below November of 2014.
This trend coupled with and election being over, positive economic forecasts including job growth in Las Vegas; indicate a potential for increasing prices in 2017. Each percentage of price increase in this market means that still underwater homeowners are closer to potential options. Many of these homeowners have not been able to move. These are the residents who have not walked away from their home or short sold their home but rather have stayed the course realizing they still needed a place to live and decided to wait it out. In 2017 these homeowners will get closer to being able to sell and move up, down or out.
Another positive trend if the increase in luxury sale in the market. November sales over one Million dollars are up 46% from prior month.
Interest rates are creeping up as well but we are still at historically low rates making homeownership possible for many.