The Las Vegas Valley (includes Henderson & North Las Vegas) has seen some major market stabilization in the last year! Absorption for December 2009 is a seller's market with very little inventory. Some micro-markets (ie,Foreclosures Bank Owned, REO) are extreme seller's markets where there is no mercy to the buyers, multiple offers are the norm!
We are FINALLY seeing a stabilization of inventory and a decrease with escrows (we should have seen that late spring/early summer!) Good news for buyers? Still remains to be seen. We need to get over 10000 active units on the market before it can be stabilized from a seller's market
Las Vegas Area Market Activity (Includes North Las Vegas, Henderson and Las Vegas)
- Listings (4/15/2010): 9302
- Under Contract (4/15/2010): 15787
- Sold March 2010: 3833
Short Sales:
- 46% of Listings
- 25% of Sales
REO (Foreclosures, Bank Owned:)
- 15% of Listings
- 53% of Sales
The above breakdown shows how very few short sales are being closed and how little inventory is in the REO market currently.
In One Month: Listings are DOWN -677 units, Contracted Listings UP +857, Sales are UP +864 units. December's sales were unusually high and January's numbers are still higher than last January. Close ratios are going lower because much of the pending inventory is short sales which requires LONGER close times.
DOWN PAYMENT ASSISTANCE HAS NOT ENDED FOR FIRST TIME BUYERS, HOWEVER!!
The Most Current REO (Foreclosure) Report
Renee ... some of the BEST reports on AR!!!!!!!!!!!!!!!!!!!!
I find your definition of a stable market very interesting. I think a stable market is 4 to 8 months of inventory.
Do you use solds for one month or some longer period when computing absorption rates? Using one month makes for more seasonal variation. Using three months sales makes for less.
Increase in sales and decrease in inventory. Good to see that your market is doing good.
Buyers and sellers are fortunate to have your clear, comprehensive and thorough market statistics.
I am just amazed at how much of a "sellers" market you are in. Absorption Rates in the 2's? That is crazy. My market was as high as 10, it has now moved down into the high 6's or low 7's. Our average priced has leveled off and I am seeing some areas with a little appreciation. But I don't think we are out of the woods yet.
Thank you
Renee - Inventory appears to be consistently going down in Las Vegas NV each month, but sales tend to vary, I'm assuming due to all the short sales???
Wow, 15,700 of under contract properties. Please hold on to those Buyers with your teeth if you have to. Our UC's are climbing steadily also, it's a little scary!
Renee,
Have to like the sales numbers being up 864 units. April might continue the winning streak.
Pippa: You are always so kind to me and I appreciate that, thank you!
Jim: I range from 1-12 months and my husband made the excel chart for me to show trends. I consider stable 5-7 months because it would be rare to hit exactly 6 months. All of the classes I have taken have given me this formula (in my chart) for absorption so I call it 6 to make it simple :)
Leolinda: Thank you dahling!
Scott: we are not out of the woods yet and just two years ago we were sitting on more than 12 months of inventory! In some sectors like short sale and high rise we were looking at 7 years of inventory! How sick is that?
Michelle: You are correct that short sales are killing our closing ratios!
Kevin: I agree with you. Tax credit will expire and interest rates could rise and that could kill our buyer pool.
Esko: I think we are going to be pretty brisk through June 30! After that is a big "IDK" (i don't know)
I am going to put my hands over my eyes and try to forget I saw a new chart up there ....for a little while, anyway.