Another year in the making……HAPPY 2014 to all!
As we start the new year with new memories and new real estate milestones, I would like to take this chance to take us back to 2013 in review.
Las Vegas home prices rose for 19 straight months! Our median home price was at its lowest at $118,000 in January 2012. Months of buying frenzy ensued and reports of exponential home value appreciation graced the front page of real estate news. As anticipated, the record run halted in September 2013, when the median home price fell by 1 % from the previous month to $180,000. This was the first time local home prices went down from one month to the next since January of 2012!
The leveling off presented us with almost double the inventory by October 2013. Although, due to the decrease in new listings over the holidays, our inventory of “active” listings is currently at 6,587 homes.
2013 ended on an upswing; up 24 % from the same time the year before. Coincidentally, we saw the same trend a year prior; showed a 24% year over year increase from start to end of 2012.
Median price of single family homes sold in December was $185,000; up 1.1% from $183,000 in November and up 24.2% from $149,000 back in December 2012.
Meanwhile, median price condominiums and townhomes sold in December was $96,000, down 3.0 percent from $99,000 in November, but up 26.3 percent from $76,000 one year ago.
We have seen strong appreciation over the past two years. All forecast reports and trends are showing strong sign of an upward trend in 2014. I expect to see traditional sales continue to lead in 2014, while more stable home prices will help first home homebuyers and novice investors finally find their dream home.
For those who have been reading my market report, you would have seen gradual decline in cash buyers as well. This market segment represented almost 60% of the sales in February this year; that compares to 44% in December. Still, an above average indicates that cash investors are playing a key role in our current market. Additionally, recent industry reports have indicated Nevada is still a “hotspot” for investors. So we will continue to see activities in this market segment in 2014.
As for the “Distressed Sale” market, almost 21% of the sales in December were “Short Sales”; that’s a 21% decrease from the month before. While Bank-owned (aka “REO”) properties represented almost 9% of sales in December; up from 7% in November.
62% of 40,242 homes sold year-to-date in 2013 were traditional sales. That’s a huge jump from 2012, when only 37% of 44,902 sales that year were traditional listings.
According to Wikipedia, DOM (“days on the market) can also be used as a “thermometer” to gauge the temperature of a housing market. I’ll say that’s pretty spot on! DOM is a crucial data that helps us understand how quickly a home is sold in any given area, subdivision and type of home. It directly affects the pricing structure of a listing.
In December, 69% of single family homes and 63% of condos and townhomes were sold within 60 days. That compares to November, when 74% and 67% respectively were sold within 60 days