Las Vegas Real Estate Trends and Area Housing Market Report for December 2016
The Southern Nevada’s housing market ended the year very strong with month-to-month improvements in various areas. The housing supply still remains tight.
GLVAR President David J. Tina, a longtime local REALTOR® who became GLVAR president on Jan. 1, said he was “pleasantly surprised” to see home sales increasing in December by 4.6 percent compared to the previous month and by 1.3 percent compared to the previous year. Condo and townhome sales were even stronger, increasing by 18.9 percent from the previous month and by 12.4 percent from the previous year. He cited a combination of factors driving local home sales, including an improving local economy and a population that is growing by about 2 percent per year.
“Even with the tight housing supply we had in 2016 and even with home prices appreciating at a healthy rate, I think people are still seeing the opportunity here,” Tina said. “Our population is increasing again because the economy is improving and people want to move here for all the reasons that have always made Southern Nevada an attractive place to live, from our warm weather to our relatively low taxes and entertainment offerings and more. Plus, our home prices are still a bargain compared to cities in places like Northern and Southern California.”
The medium price for Single Family Homes for December 2016 was $235,000 down 2.1 percent from November 2016 medium price of $240,000 and up 8.3 percent from December 2015, which was $217,000.
Sales increased for December 2016, the sales volume for Single Family Homes was 2,720 up 4.5 percent from November 2016 which was 2,603 and up 1.5 percent from December 2015 which was 2,679.
According to GLVAR, the total number of existing local homes, condos and townhomes sold in December was 3,402, up from 3,290 in December 2015. According to GLVAR, a total of 41,720 such properties were sold in 2016. That was more than the 38,577 properties sold during 2015. It was also more than in 2014, but fewer than during each of the previous five years.
The effective months of inventory for December 2016 was 2.4 months, down 11.9 percent from November 2016 which was 2.7 months and down 2.7 percent from a year ago which was 2.7 months. A six-month supply of homes would be considered a balanced market. So, we are still in a sellers’ market.
Effective months of inventory.
The medium price for Condominiums and Townhomes for December 2016 was $112,600 down 4.6 percent from November 2016 medium price of $118,000 and down 4.5 percent from December 2015 which was $117,900.
Sales volume for Condo/Townhomes for December 2016 was 687 up 18.4 percent from November 2016 sales volume of 580 and up 12.4 percent from a year ago which was 611.
The effective months of inventory for December 2016 was 1.4 months down 21.9 percent from November 2016 which was 1.8 months and down 58.4 percent from a year ago which was 3.4 months.
Distressed sales, 4.8 percent of all sales were Short Sales that’s down 6.8 percent from a year ago. Another 6.2 percent for December were Bank-Owned down 6.9 percent from a year ago.
Cash sales, 28.7 percent of sales for December were purchased with cash, up 28.4 percent from a year ago. So investors are still active in the Las Vegas Area residential sales.
December 2016 Housing Video
“Around the Las Vegas Valley, master-planned communities offer housing, parks, retail, schools and other components. And after the economy crashed last decade, these sprawling projects were derailed with practically everything else in the real estate industry.” — Master Planned Communities in the Las Vegas Area making a steady comeback: CADENCE – INSPIRADA – SKYE CANYON – SUMMERLIN
“The region hosted a record 42.9 million visitors in 2016, a 1.5 percent increase from the previous year, according to preliminary statistics released Tuesday by the Las Vegas Convention and Visitors Authority. The authority forecasts a modest half-percent increase in 2017 to 43.2 million.” Las Vegas hosted record 42.9M visitors in 2016
“Nevada’s nine-year low meant a 5.1 percent unemployment rate reported in December, according to Department of Employment, Training and Rehabilitation data released Tuesday.” — Nevada’s unemployment rate tumbles to 9-year low
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