Recovery - It's in Sight
The median price of resales in November was $133,000. In 2011, the median price was $114,000. That means our resale home market has increased by 16.6%. And while the resale market is improving, so is the new home sales market.
The new home sales are impressive, with robust sales and increased prices. The median price of a new home is $219,285. That is the highest since March 2009. Last year, the median price was $204,064, which is a 7.4% increase. Usually, this time of year, we have a "holiday funk" in the new home sales market. The normal "holiday funk" is a 50% drop in sales for new homes.
There was no "holiday funk" this year. There were 596 recorded new home sales in November. In the last 4 months, new home sales averaged 600 per month. That is a 39% increase over last year or 1,379 more sales. If December ends up around 600, that will end the year around 5,500 new home sales. 2012 will boost a 40% increase in sales of new homes.
Land - Prices are Rising
With land being a major ingredient of pricing, the experts see a 10% increase in prices in 2013 as builders will pay more per acre. The increase in housing permits is an astounding 64% over last year. Never have we seen an increase that high.
Lennar bought 167 lots for $5.2 million in Northwest Las Vegas. They are on track to purchase an additional 160 lots early next year. In some areas, land is selling for approximately $150,000 per acre, which is up 10% - 20% from last year.
Despite the increase in the median price of a new home, the monthly mortgage payment for a 3-bedroom home is still less than rent with the low interest rates.
Zillow reports that Las Vegas is #4 in the sellers' market stats in the country. Simply stated, that means low inventory, increasing prices, and fewer days on the market.
Las Vegas - looking Positive
Las Vegas was one of 7 cities in the country that recorded positive monthly gains.
Across the US, home prices are back to the 2003 level for both the 10-city and 20-city composite studies provided by Case-Shiller.
Investors as well as regular home buyers are finding that now is the time to make the move to buy a home in Las Vegas.
