Las Vegas real estate market broke just about every available record in the first quarter of 2006. March continued the record trends found in January and February of this year.
Brief Las Vegas Home Sales Overview:
Las Vegas new home sales are a fast paced 19.3% ahead of last year’s first quarter. March was the fifth highest new Las Vegas home sales month in history. Last year’s record could be broken by the new Las Vegas home sales totals.
Existing Las Vegas home sales are just about 1% ahead of last year. March figures are down slightly in total from last year. Resales in 2005 were just 2.2% under the record set in 2004. Las Vegas could still see a record in resales this year.
Forbes magazine said resale prices of Las Vegas home sales would drop by 8.5% this year. Currently, Las Vegas home sales are at a record $284,900. A 8.3% increase over last March for Las Vegas real estate.
New home prices are at an all-time record high of $320,379. That is 12.5% ahead of last March Las Vegas home sales figures. March figures include 629 conversion sales, too.
MLS, Las Vegas home listings, totals jumped nearly 2,000 to 16,201 in March for the highest level in Las Vegas home sales history. But, the key measure of absorption, average days on market, did not change. The measure of absorption remained steady at 54 days, the same as last year’s figures for March. Definition of a “hot” market: less than an average of 60 days on the hot Las Vegas real estate market.
There was a record high, 512 active new home subdivisions in the Las Vegas real estate market in March. This makes Las Vegas the city with the highest number of subdivisions per capita in the world!
Some REALTORS and homebuilders have expressed concern that Las Vegas home sales seem to be “down.” The amount of product available is one reason why traffic reports may not be reliable indicators in the current market. So, the more Las Vegas real estate standing inventory, the less traffic per subdivision.
Inventory is what makes many observers identify Las Vegas real estate as a “Buyers Market.” Unfortunately, the term is so overused and does not describe our current market condition.
A “Buyers Market” says the Las Vegas buyer can command both incentives and lower prices from the Las Vegas real estate seller. In this Las Vegas real estate market, we are not seeing lower prices. In addition, the incentives we see tend to be those you expect to remain competitive in a crowded market. So, we don’t think “Buyers Market” is the appropriate phrase to describe the current situation in Las Vegas real estate.
Las Vegas prefers the term “balanced.” Interesting as that may be, if prices continue to rise, we can’t be in a “Buyers Market.”
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Las Vegas home sales in Las Vegas real estate for 1st quarter 2006.