Even in light of the increased number of new construction sales in our market; resales closings have increased by 9% in 2016:
Resale Closings Year
The increase in the number of closings between 2014 and 2016 was 5,503; a 16% increase. This is a sign of a healthier economy and therefore a healthier Real Estate market. More residents of Southern Nevada were able to buy a home in 2016 than in 2014 or 2015.
At the end of 2015, the average sales price was $254,159. December, 2016 the average sales price was $274,710 and increase of 8%. Still prices are very affordable but inching their way up with a healthy level of appreciation.
The Crystal Ball for 2017 is a continued increase in pricing, and perhaps an increase in interest rates as well. Our recommendation is to purchase as soon as you can as you will see additional increases in pricing this year. If you would like to sell but you are still under water, the next year could bring good news for you.
The number of resale homes on the market is at an unseasonably low level – 7,455. This 17% drop from December of 2015 and 8% from November of 2016 could be a trend.
The last time we saw resale inventory below 8,000 was September of 2013. Many of you may recall, that 2013 was a big year for appreciation in the valley.
The December. 2013 closings were at 3,433. Closings are up 8% compared to December of 2015 and 8% when compared to November of 2016. Overall the number of closings or demand is stable.
The Average Resale sales price is $274,710 in December of 2016. This is an 8% increase over December of 2015 ($254,159).
With a decrease in resale listings there will be more competition for properties and we could see an increase in pricing. We may see multiple offers on properties as well.
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.
Begin – The home buying process
Organization is the key to finding the home you want while spending the least amount of time and energy.
Step One – Find out how much house you can afford before you go house hunting. A loan officer is a critical partner in helping you understand your budget options as well as the process of obtaining a home loan.
Step Two – Make a list of everything you want in a home. If there are two or more of you making the final decision, make separate lists to begin with. Then discuss the lists and agree on your top three priorities. Everything else becomes a secondary priority.
Step Three – Search on line and share your results with your selected Real Estate Agent. Look at homes with your Real Estate Agent. Keep good notes as after a while it can become difficult to determine which features belonged to which house.
Step Four – Once you have identified the house your want, work with your agent to review comparable sold properties to determine your offer price and terms. Write the offer!
Now you have found your home, but there is much more ahead before you can move in.
Preparing for a showing
There is some preparation for your showing that will set you up for a more successful showing. Here are a few tips:
- Open all the shades and curtains to let in light.
- Turn on enough lights so the home is well-lit. Yes, even in the middle of the day.
- Remove clutter from tables and bookshelves. Neatness makes rooms seem larger.
- Remove pets. Take them with your or keep them penned in the yard or garage.
- Put away items in the yard such as garden tools, bicycles and toys.
- Turn on gas fireplaces to create a cozy atmosphere.
- Grind up part of a lemon in the disposal to add a fresh smell to the kitchen.
- Turn on soft music on your home sound system to create a relaxed, pleasant atmosphere.
Remember, you only have one chance to make a first impression.
Want to more about all things Real Estate? Just ask!
What is Due Diligence?
When purchasing Residential Real Estate or land, the agreement between the buyer and seller will outline a time frame in which the buyer can conduct their due diligence. This time period is the buyer’s opportunity to bring in professionals to conduct inspections of the structure and systems. In cases where the property may need remodeling after close of escrow, the buyer will bring in contractor’s and other professionals to get bids on the work the buyer wants to do after they take possession of the property.
During the due diligence period the buyer is taking an in-depth look into everything about the property and deciding whether to ask the seller for additional concessions like repairs or a credit towards closing costs in lieu of repairs, or to just move forward as is. In some cases, the buyer may decide not to move forward, in which case, the buyer would be eligible to receive their earnest money back.
For seller’s, proper maintenance of all systems and structures during the life of the property is a good investment in maximizing a potential buyer’s satisfaction with the home.
If you have questions about anything Real Estate, we can help! Just ask.
2015 LAS VEGAS MARKET – YEAR IN REVIEW
* There was an increase from 34,525 resale closings in 2014 to 36,422 closings in 2015; an increase of 5%.
* One of the most significant changes from 2014 to 2015 is the number of short sale closings. A total of 2,667 short sale closings transacted in 2015 compared to the prior year which was 4,121. This is a decrease of 35% which is a very positive change and an indicating of a healthier Real Estate market.
* At the end of 2015 the average sales price was $254,159. Compared to the end of year average sales price for 2014, at $249,934. This is a slight increase of about 2% in values year to year.
* An increase in traditional sales from _____ percent in December 2014 to ______ in December of 2015. This increase in traditional (non distressed) properties and decreased in distressed (short sales and foreclosures) is another positive change indicating a move towards a stronger, healthier Real Estate Market.
* Closings of Real Estate is up 32% month to month.
* The number of new listings on the market compared to prior month is down 19%. This is a reflection of the time of year. Fewer homeowners list their properties in December.
* The number of new listings over $500,000 is down 16% compared to prior month. Again a reflection of the time of year.
* The number of short sales closings increased 31% when compared to prior month. Short sales are closings in which the bank who holds the note has agreed to take less than is owed on the property.