Current Las Vegas Housing Absorption Rate For April 2014
Currently we have 2.6 months of inventory for Single Family , town homes, and condos in the Greater Las Vegas area, which includes Las Vegas, North Las Vegas, and Henderson . This was calculated by taking all the sold properties the last 12 months reported through the GLVAR MLS which was 37,046 divided by 12 months which tells us we averaged 3087 sold properties a month.
Take our current inventory of active properties of 8232 and divide by the average sold properties a month tells us it would take 2.66 months to sell off our current level of homes. Compare this to November 2013 when I last ran these numbers and came up with 2.6 months of inventory, you can see little has changed. Based on these numbers we are still in a sellers market since a balanced market is considered 5-7 months of inventory.
One thing this doesn't take into account is the level of new home inventory out there, since builders have ramped up the last few years based on higher demand. Many of these homes don't report on the MLS which make it harder to predict how they will effect inventory. What I have personally seen is resale homes in good areas that are priced close to market are selling in under 30 days, but homes that are priced excessively high tend to sit a lot longer and sellers have to adjust the price to sell it.
The new home builders have filled the void and created more choices for buyers although they do sell at a premium over resale homes on the market. I think the new homes have helped create balance in our market and helped shift it from an extreme sellers market with less than a months supply in May 2013 to our current level. Home prices are up 2.7% from February 2014 to March 2014.
We are heading into our busy season and since interest rates are still currently at decent levels , I predict we will see some price increases the next few months. The Las Vegas economy and population continues to grow so that is promising as well for home prices. It looks like the market is getting healthier , hopefully we see wages increase and more jobs being added to keep up with predicted rising interest rates to help balance out any price drops the rising rates and new home inventory may bring.
Another good thing is Southern Nevada remains very attractive for retirees, business owners and entrepreneurs, coming from other , more expensive, markets like California where the home prices prices and tax structures are not a favorable as Southern Nevada.