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While across America existing-home sales decreased for the third straight month in June, it was not so in Las Vegas, according to the National Association of Realtors® (NAR). The ongoing supply and demand imbalance helped push June’s median sales price upward.
The Las Vegas Business Press, https://businesspress.vegas, recently reported that Summerlin recorded the biggest increase of home sales in the nation among master plans during the first half of 2018 and has reached No. 3. Three other Southern Nevada communities were ranked in the top 20.
Some call it a reflection of the ongoing recovery of the Las Vegas real estate market since the Great Recession. A strong economy and relocation of buyers from California has contributed to the continued gains in addition to a lack of existing homes on the market.
Lawrence Yun, NAR chief economist, says “The root cause is without a doubt the severe housing shortage that is not releasing its grip on the nation’s housing market. What is for sale in most areas is going under contract very fast and in many cases, has multiple offers. This dynamic is keeping home price growth elevated, pricing out would-be buyers and ultimately slowing sales.”
In Las Vegas, the median existing-home price for all housing types in June was $309,000, compared to the national $276,900. This is a .02% increase in the median price compared to May, and 1% higher than June 2017. New home prices in Las Vegas average $480,912; Henderson $441,328; and North Las Vegas $311,025.
Total housing inventory, for previously owned homes continues to put pressure on home prices in the Las Vegas area. The average days on market in Las Vegas is currently 40 compared to 50 days for the same time last year. Fifty-eight percent of homes sold in June were on the market for less than a month.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 4.57 percent in June from 4.59 percent in May. The average commitment rate for all of 2017 was 3.99 percent.
“Realtors® throughout the country continue to stress that there’s considerable pent-up demand for buying a home among the millennial households in their market,” said Yun. “Unfortunately, they’re just not making meaningful ground, and continue to be held back by too few choices in their price range, and thereby missing out on homeownership and wealth gains.”
First-time buyers were 31 percent of sales in June, which is unchanged from last month and down from 32 percent year ago. NAR’s 2017 Profile of Home Buyers and Sellers revealed that the annual share of first-time buyers was 34 percent.
For the New Home market in Las Vegas, there has been a 30% increase in home starts over last year. “We are seeing about 1,000 starts a month” reports Nat Hodgson, Executive Officer for the Southern Nevada Home Builder’s Association. The Southern Nevada Home Builder’s Association represents 98% of the builders in Las Vegas. They range from production builders and custom -- high end builders.
“Due to costs of Land, Lumber and Labor, entry level new homes are getting very hard to build.” Hodgson continued. For many first-time home buyers, it may be advisable to begin with a previously owned home. In the Las Vegas market, “mostly move up and high-end homes are currently being built.”
Multi-family housing is on the rise, which should help deliver more affordable first-time new home offerings.
Another trend in new home communities is the return of the 55 plus, or Active Lifesytle Communities. When The Del Webb Development Company opened Sun City Arizona’s first five model homes on January 1, 1960, it was embarking on a brave new venture. It was proposing a rather bold idea: a master-planned retirement community built specifically for active adults. This was truly an original concept because up until this time, retirees were expected to retreat from life—literally, to retire from it—so they could sit at home and rock away their golden years.
Delbert Eugene Webb was an American real estate developer, and a co-owner of the New York Yankees baseball club. He is known for founding and developing what was then called a retirement community of Sun City, Arizona along with many works of his firm, Del E. Webb Construction Company. He went on to build hotels and resorts. Webb was born in Fresno, California, on May 17, 1899 and died on July 4, 1974. The Del Webb company continues to build active adult communities across America (www.delwebb.com).
“While Del Webb continues to build, others in the Las Vegas area are delivering as well. They include Trilogy, Toll Brothers, Lennar and others” concluded Hodgson.
Some may say to “wait for the market to drop” in Las Vegas, the only sure bet is to make a home purchase sooner than later. Tour the over 228 hew home communities in Las Vegas, Henderson and North Las Vegas. Another great place to start is with a local Realtor®