Homes- Selling Across the Country
The graphic shows how fast the homes are selling across the country. This information comes from the latest Realtors Confidence Index.
Approximately 1/3 of REALTORS stated that recent sales are selling in less than 30 days. 59% of the listed homes were sold in less than 3 months.
The Market- Why it's Moving So Fast
Buyers are attracted to the lower prices and interest rates. The interest rates remain at all time lows which makes home buying such a sensible move. Investors are liquidating other investments and many are buying homes with cash.
The median price of a home in the USA is $183,000. The median price of a home in Las Vegas is $140,000. With 5% down, the mortgage payment would be approximately $671. Las Vegas remains affordable for home ownership and makes sense for first time home buyers. In many cases, their rent is more than their mortgage payment would be.
The return on investment for investors is around 8% after expenses. The rental market remains brisk with the many displaced home owners who must sell their homes short. Many of the displaced home owners are renting homes in their same neighborhood so their children can remain in the same schools. Homes are selling because affordable housing is back and consumers feel it is the right time to buy.
Affordable Housing- Drives The Market
From the late 1980's until the housing crash, affordable housing helped to build Las Vegas. Affordable housing accommodated thousands of people who moved here for the weather, a place to retire, no state tax to pay and jobs.
Las Vegas was and still is a new dynamic city with opportunities. Money is being invested (see the previous Market Watch blog) and jobs will be created. The climate is still a welcoming change to many who move here from other parts of the country and the world.
Short Sales Are Increasing- Compare the Market
The charts below compare the home market in 2010 to 2012. The charts show how the Las Vegas foreclosure market has shifted to short sales. Short sales help neighborhoods and home values.
Even though the inventory is lower largely due to the lack of foreclosures, the short sales have increased in relation to the regular sales and the foreclosures. The 10% increase in regular sales may indicate that home values are increasing along with consumer confidence. There is much speculation as to where the real estate market is headed.The national news media is saying that the market is improving around the country. The chart below shows that the number of sales in Las Vegas has remained fairly consistent over the past three years. Inventory is lower but sales remain steady.
Las Vegas buyers have less inventory to choose from so it takes less time to find a home. According to the numbers the buyers are still buying.
The Las Vegas Market Watch will keep you informed.