Las Vegas resale report

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The Las Vegas real estate Market report for the second quarter of 2006. This is what has happened in the Las Vegas real estate resale homes market place.

The market in Las Vegas has been extremely active for many years now with appreciation of 46% in 2004 and 15% in 2005 we have see the prices and demand for homes increase as investors and home buyers have raced to get their peace of this escalating real estate market. The Las Vegas resale home market has been slowing due to increased supply of new housing, an increase in condo conversions, increases in interest rates and the liquidation of homes by speculators. We saw fewer buyers in the market place in 2005. We have seen even fewer Buyers in 2006 as well but still have a very active market. (#89)  In the first quarter of this year we saw a slight increase in existing home closings over 2005 but in the second quarter we saw a decrease of nearly 2,200 closings (about 15%) from 2005. This decrease could be attributed to increased interest rates and a softening of the California real estate market. (#88)The New home closings held steady in both quarters with the 2005 closings. (#90) Over all the Las Vegas Total home closings grew in the first quarter but was down slightly in the 2nd quarter in comparison to the 2005 figures.

Interestingly enough the median price of existing homes (#92) have increased over a year ago to nearly $280,000.

(#95) If your in the market for million dollar plus homes the total closings for this Luxury home market increased by 19 units to 297 closings in the 2nd quarter. Within this group of homes the resale market increased (#94) 9.5% to 231 homes sold in the 2nd quarter of 2006.

(#160) Inventory levels peaked in May at over 20,000.  Keep in mind that with approximately 2 million people living here that’s one home for every 200 people is for sale. Las Vegas is so accustomed  to having  such low inventory levels that it seems as if we are flooded with inventory. But when you look at other major metropolitan markets we are just about average.

(#161) The question has been posed by many a boom/bust speculator in the newspapers that the Bubble will burst for Las Vegas real estate investors. One reason is they point to the sudden increase in sales inventory.  The reason for this inventory increase is that the real estate speculators who purchased looking for heavy increases in appreciation are now selling their units and taking their profit. (#163) The other reason is when Buyers purchased using Adjustable Rate Mortgages in 2004 to purchase their properties when interest was around 5% now find that their rates are being adjusted upwards to close to 7%. These Sellers must get their price to pay off their mortgages.
 

(#115) Based on indicators on loans, investors for the second quarter of 2006 were approximately 8% of the market. In 2004 estimates of investors and speculators were around 20% and in 2005 investors share of the market plunged to around 5% This is a welcome sign and shows the markets health in bringing back investors looking for  long term investment opportunity.

(#120) Purchasers who are single are continuing to trend upward comprising about 1/3 of all homes purchased here in the valley.

(#118) While just under 5% of Buyers paid cash for their home purchases in this quarter.

(#121) 2/3rds of the Purchasers had no children. Indicating a growing trend towards an aging market of  Baby Boomers and an indicator of housing affordability issues in Las Vegas.
The median monthly mortgage payment in Las Vegas is now (#119) $2,035.

Please note that the Bust predicted by media “Experts has not occurred in the Las Vegas Market.” In fact indicators still show appreciation in the market place which is contrary to the definition of a Bust.

The statistical information offered here was supplied by SalesTraq and housing analytics company with offices based in Las Vegas Nevada.

If your interested in what trends are predicted for the Las Vegas area by the experts and why. Please subscribe to my video news letter at email:Video@MaxSellsVegas.com. In this inside view of Las Vegas real estate I’ll reveal my opinion on why prices have increased even with the increase in inventory and much more. If your viewing this report on the web you will find a link for subscription directly below this video.

Contact Max here NOW!

Prudential Americana Group, Realtors®
Max Schmidt P.C. dba Max Schmidt
Broker/Salesman
871 Coronado Center Dr., suite 100
Henderson, Nevada 89052
(702) 334-2200

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