Recovery - It's in Sight
The median price of resales in November was $133,000. In 2011, the median price was $114,000. That means our resale home market has increased by 16.6%. And while the resale market is improving so is the new home sales market.
The new homes sales are impressive with robust sales and increased prices. The median price of a new home is $219,285. That is the highest since March 2009. Last year the median price was $204,064 which is a 7.4% increase. Usually this time of year we have a "holiday funk" in the new home sales market. The normal "holiday funk" is a 50% drop in the sales for new homes.
There was no "holiday funk" this year. There were 596 recorded new home sales in November. The last 4 months new home sales averaged 600 per month. That is a 39% increase over last year or 1,379 more sales. If December ends up around 600 that will end the year around 5,500 new home sales. 2012 will boost a 40% increase in sales of new homes.
Land - Prices are Rising
With land being a major ingredient of pricing the experts see a 10% increase in prices in 2013 as builders will pay more per acre. The increase in housing permits is an astounding 64% over last year. Never have we seen an increase that high.
Lennar bought 167 lots for $5.2 million in Northwest Las Vegas. They are on tract to purchase an additional 160 lots early next year. In some areas, land is selling for approximately $150,000 per acre which is up 10% - 20% from last year.
Despite the increase in the median price of a new home, the monthly mortgage payment for a 3 bedroom home is still less than rent with the low interest rates.
Zillow reports that Las Vegas is #4 in the sellers market stats in the country. Simply stated that means low inventory, increasing prices, and less days on the market.
Las Vegas - looking Positive
Las Vegas was one of 7 cities in the country that recorded positive monthly gains.
Across the US home prices are back to the 2003 level for both the 10 city and 20 city composite studies provided by Case-Shiller.
Investors as well as regular home buyers are finding that now is the time to make the move to buy a home in Las Vegas.