Want to buy real estate in Las Vegas? Of course you do! You just need to know the facts.
The media may tell you that Las Vegas has been hit hard and prices are very low, and they would be right. What they aren’t telling you is that the best properties are moving fast.
So here’s the skinny on the actual numbers:
- A total of 25,114 homes are ON THE MARKET as of this writing. This includes single family homes, condos and townhouses in Las Vegas, Henderson and Boulder City. Properties in Pahrump, Laughlin and Mesquite don’t count because I don’t normally drive my buyers THAT far out of Las Vegas to find a property. If you are looking for a home in Las Vegas, you aren’t considering these other areas.
- Of those 25,114 homes, 13,120 are CONTINGENT OR PENDING – meaning they are UNDER CONTRACT and both buyers and sellers have come to terms, it’s just paperwork and time now. As a real estate agent, I want you to be able to buy a home, so I’m not going to show them to you and you aren’t going to write backup offers on these. It’s a waste of time for all concerned. What I’ll do is create a ‘search’ for you in the system and if one of these properties doesn’t actually sell and becomes available again, THEN we’ll consider it. Good idea right?
Now do the math. 25,114 minus 13,120 leaves us with …. (drum roll please) 11,994 properties.
In the last 12 months, we’ve SOLD 45,792 homes. Looking at the last six months, we’ve SOLD 23,614 homes. In the last three months, 11,333 Las Vegas homes have SOLD.
There is a formula we use called ‘absorption rate’ that tells us how long it takes us sell the current inventory, if no new homes were to come on the market at all.
Depending on the length of time it takes to sell them all, that is how we determine whether it’s a Buyer’s Market, Seller’s Market, or pretty much neutral. If it takes six months to absorb the entire inventory, then it is pretty even and neutral. If it takes longer, then it is a Buyer’s Market because homes stay on the market longer, meaning sellers will probably consider taking less than asking price. If it takes less than six months, it becomes a Seller’s Market, and sellers get the upper hand. Does this make sense? (if not, email or call me and I’ll explain further)
Now, based on the above numbers, and considering ALL TYPES OF PROPERTIES – meaning single family, condos and townhomes, regardless of whether or not they are bank-owned homes, short sales, flips (that’s another blog) or traditional Las Vegas homes for sale, it will take about THREE MONTHS to sell all the current inventory.
Here’s how we come up with that number – 11,994 homes on the market right now and we sold 11,333 in the last three months. Pretty easy math I’d say. Three months and all the inventory is GONE.
Guess who is in charge of the market? Yes, Mr. & Mrs Seller, it’s YOU!
Does that mean you shouldn’t buy now? Not a chance! It means your Las Vegas real estate agent needs to stay on top of the market so that you can look at homes as soon as they come on the market and get your offer in fast.
Just be prepared to pay current list price or close. It’s still a heck of a deal.