Las Vegas Housing Trends – February 2015

The Housing Trends newsletter for February 2015 is now up.  This month’s highlights in the national housing market are:

  • Nationally the median price for a home was $199,600.
  • Nationally new home sales were 4.81 million units.
  • Nationally all regions experienced declines in sales in January.  Low housing supply and an ongoing increase in home prices are blamed for the decline.

The Las Vegas market follows the national trend.  According to a Salestraq resale report for January 2015  the local market for single family homes experienced decreased sales (1,794 units sold versus 2,225 in Dec. 2014) and lower median prices ($200,000 versus $204,000 in Dec. 2014).

Also, foreclosure activity has increased.  Lenders are increasing their foreclosure starts and seizure of homes.  Still, foreclosure activity remains relatively low compared to past years.

Nationally, rental rates are increasing.  In Las Vegas, we are seeing some luxury apartments going up offering premium accommodations at high rental rates.  With several projects under construction or recently completed we will have to wait to see if the demand for high end rentals exists.

Other items of note regarding our local market.  Lawrence Yun, Chief Economist at the National Association of Realtors, has commented on our Las Vegas market:

We are in a recovery phase. Prices are up 25 percent nationwide from the bottom but still well below the bubble peak level. It’s a recovery phase, not an expansion phase, and there’s still more healing that needs to be done. 

My view from the trenches is that sellers are starting to realize the gains we have had over the past few years are not going to go up much more this year.  Sellers are becoming more realistic with their pricing and bringing it more in line with the current market in their neighborhood.

Does this mean we have a buyer’s market.  Not really.  It means there is now more room for negotiating. Sellers who are priced well and have nicely maintained homes are more patient and understand slightly longer days on market are now to be expected.   Unrealistic offers are not being taken seriously and can hurt a buyer (if not presented properly).

Have Las Vegas real estate questions?  Call me – 702-527-8864.

Cindy Abel, Broker/Owner – Southern Nevada Realty, LLC