Las Vegas NV Real Estate hasn't been a total bomb this year. There are several markets that are moving that need to have their day in the sun. Just like my subject line touts: Rentals & New Construction are chugging along fairly well. Bank Owned Property (REO's or foreclosures) are moving and I do believe are set to see better days VERY soon with prices slowly sliding downward.
New Construction: New Construction started out with a bang in 2007 when January unit sales outpaced 2003, 2004, 2005 & 2006. The mortgage meltdown in late Feb/Mar slowed it down but it still was outpacing some recent years. Mortgage meltdown #2 in July killed sales. September sales were dismal BUT builders retaliated using guerilla warfare: SLASHING PRICES in some cases to 2003 levels. October/November & December will be interesting to watch to see if there is a rebound. If you need an investor bundle minimum $3 million cash 75 cents on the dollar, call me! I know 75 cents on the dollar doesn't seem enticing but the prices with several builders have been slashed in the last month. An abundance of standing inventory that is already highly upgraded and turnkey makes this a great alternative to an REO bundle at 40 or 50 cents on the maybe not so recent BPO dollar that needs rehab.
New Construction Units Sold 2007:
- January: 3079 (outpaced 2003, 2004, 2005 & 2006!)
- February: 3103 (outpaced 2003, 2004 & 2005)
- March: 3496 (outpaced 2003 & 2006)
- April: 3167 (outpaced 2003)
- May: 3414 (outpaced 2003)
- June: 3337 (outpaced 2003)
- July: 3153 <-Mortgage Meltdown #2, all months through September were lowest units sold in that month from 2003 to present
- August: 3449
- September: 2669
Rentals: The residential market has been gaining ground all year long. Demand for housing still exists in our market with a strong incoming population. Fill in the sentence: If people need housing and aren't buying homes they are going to R**T! Very good girls and boys :) Low inventory (listings) coupled with increased amounts of leased units = rapidly rising rental prices.
Current Rental Statistics:
- Listings (10/19/2007): 4191
- Under Contract (10/19/2007): 475
- Leased (9/15-10/15/2007): 1448
- Absorption Rate: 2.9 Months Inventory
- Average Monthly Rental Rate: $1603, Up $308 since Jan 2007
Foreclosures (REO's, Bank Owned Property): Foreclosure statistics are very hard to track because I do find that this has to be one of the most incorrectly entered listings in the MLS, short sales probably a close second. Bank owned bundles are going for around 50 cents on the dollar $5 million minimum, not so much pick of the litter but I would call it the pick of the kitty litter. They will try to unload functionally obsolete properties, properties with much need of rehab and very hard to sell properties. The price will be weighed on BPO's which may or may not be recent and reflective of the new construction market prices. Prices are sliding downward on REO property, not quite enough or in large part to be competitive with new construction. I do think this market does bear watching as the absorption rate is not as pitiful as other parts of the market or the Las Vegas residential real estate resale market as a whole.
- Current Listed Bank Owned Statistics:
- Listings (10/19/2007): 1823
- Under Contract (10/19/2007): 286
- Closed (9/17-10/17/2007: 188
- Absorption Rate: 9.7 Months Inventory
All statistical information I used to create this report was obtained from the Greater Las Vegas Association of Realtors. Information is deemed reliable but not guaranteed.
