Up, Down and Back Up - Like a Roller Coaster

 Today I want to take a Closer Look at Median Home Prices 

for Henderson, Las Vegas and NLV during the Pandemic.

Up, Down and Back Up  -  Like a Roller Coaster

Back in early March when all of this first started, 

Las Vegas and Henderson were both having a Boom.

Median Prices had Shot Up to Record Highs.

Henderson was $509,888

Las Vegas was $415,000

Post - Prices Shooting Up Amidst Health Scare

Then in Late May we saw the Prices Drop 

Henderson went to $ 460,000

Las Vegas went to $ 368,950

Inventory went Way Up and Prices Down. 

Post -  Past, Present & Future ???

 This week things have changed again.

Henderson back up to $491,955

Las Vegas back up to $ 385,650

Meanwhile North Las Vegas has been on a  Slow and Steady Rise.

Until just recently they surged up to a High of $ 308,995

Governor Sisolak announced more Shut Downs on July 10th.

So what's going to happen next? We shall see...

Click HERE for Complete Market Reports

Henderson

 

Las Vegas

North Las Vegas

Click HERE for Complete Market Reports

Some "Interesting Observations"

Most Blogs we post discuss Statistics and the Cause and Affect around them.

Today I want to make some "Interesting Observations".

COVID-19 has caused us all to change in some Unique ways.

Especially how we, Live or Lives in Our Homes.

We have all spent a substantially lot more time in our Homes. 

Many of us are now Working from Home.

Some have had to become Teachers and Home School children.

For those who would go out to eat regularly, they are now Chefs.

A lot of our extra Free Time is now spent Improving our Homes.

This has caused many people to Invest in their Homes.

Home Depot and Lowe's hit record high stock prices this week.

If I had to guess, Star Nursery is probably having a great year.

There has been a National transition from people living in Cities and apartments or flats,

to wanting to be in the Suburbs with more space, more rooms and yards.

Just imagine what it must be like to live in a New York City 700 s.f. Flat 

and be told you have to stay there for 3 months or longer...

Despite Economic Uncertainty, people are still buying Homes.

Keeping home prices relatively stable.   Why...?

Historically, this is the Busiest Time of Year in Real Estate.

Interest Rates are at a Record Low. Under 3%

Many people have had a lot more Free Time than ever to shop.

Despite people having cuts in Income, they are still spending money.

And, there have been fewer things we can spend our Discretionary Income on.

No Theaters to watch Movies.

Most Restaurants have been shut down.

No Sporting events to Attend or watch in a Bar.

 Shopping Malls have been closed.

Traveling options have been limited.

The Casinos were Closed.

Many people are spending that extra Money on their Homes.

It will be interesting to see how the shut down will continue

to change our spending habits.

Past, Present & Future ??? during Pandemic

• March 5    -   1st Reported Case of COVID-19 in Nevada 
• March 12  -   Governor Sisolak Declares State of Emergency
• March 13  -   Last Day of School for Students
• March 18  -   The Las Vegas Strip is Shut Down
•            ***    Fast Forward  80 Days    ***
• June 4       -   The Las Vegas Strip is scheduled to Re-Opens

The question we get is always,

"How is this Affecting the Real Estate Market?"

The 3 Images below show Median Price and Inventories for

Henderson, Las Vegas and North Las Vegas

On Friday March 13th and then on Friday May 29th

All 3 Areas of Town had Rising Prices and Dropping Inventory.

Though they held strong until Mid April, they have since changed directions.

The Las Vegas Metropolitan Area was an Overwhelming Sellers Market,

It has now becoming more of a Buyers Market.

With Interest Rates at Historical Lows, 

Buyers should take advantage of this Short Term Opportunity.

 

Henderson

Median Home Sales Price 

on Friday March 13th was $475,000 and was Going Up 

Sales Prices Peaked in the Middle of April to $484,000

And have Since Dropped to $474,500

Inventory of Homes

on Friday March 13th was 897 and was Going Down

Inventory Hit a Low in the Middle of April of  868

And has been Growing and is now at 1,017

Las Vegas

Median Home Sales Price 

on Friday March 13th was $371,000 and was Going Up 

Sales Prices Peaked in the Middle of April to $385,000

And have Since Dropped to $382,000

Inventory of Homes

on Friday March 13th was 3,577 and was Going Down

Inventory Hit a Low in the Middle of April of  3,413

And has been Growing and is now at 3,799

North Las Vegas

Median Home Sales Price 

on Friday March 13th was $299,500 and was Going Up 

They have continued to Gradually rise to $301,500

Showing Strength in Affordable Homes.

Inventory of Homes

on Friday March 13th was 568 and was Going Down

Inventory Hit a Low in the Middle of April of  538

And has been Growing and is now at 600

The New Normal for Realtors

The Most Common Question we get is usually,

"What's going on with the Real Estate Market?"

Not lately... Now everybody asks,

"What are Realtor's doing differently when working with Buyers and Sellers?"

So here a few thing that we will now be doing.

This is Our "New Normal"

1. Less Face to Face Interactions...

The Business World had already been transitioning to E-mail and Texting.

Now we will be using Video Conferencing Tools like Zoom or Skype.

 

We also use an Electronic Signing Software called

DocuSign for Legal Signatures on Contracts and Paperwork.

This allows Our Clients to Sign Documents Using Phone or PC.

2. Keeping Our Distance...

No Shaking Hands or Hugging Friends / Clients. 

Driving in Separate Vehicles when Viewing Listings.

3. Use Protection...

We will be Supplying Masks and Gloves for Our Listings 

and to Our Clients when we Show Properties.

People who are Immune Compromised should also where 

Goggles and use Sanitizer after each Viewing.

4. New Marketing Technologies...

We are Using a 360' Virtual Camera for All of Our Listings.

High Quality High Definition Photo's are a Must.

Sharing Photo's and Videos on Social Media.

Each Listing will have a Designated Website.

Here are some examples of the Marketing Tools we are using.

https://417HoneyBrushAvenue.utour.me

We are working to keep up with the changing times. 

As always, if you have questions, please reach out to us!

Prices Shooting Up Amidst Health Scare

 The Las Vegas Real Estate Market is Changing Quickly. 

The graphs below get sent to out weekly and this week I was Shocked to see Prices Shoot Up. 

Even Amidst the Coronavirus "scare",  

Buyers are Pushing Home Prices to New Highs. 

Why? 

Interest Rates are at All Time Lows 

Falling Inventory Levels 

The Vegas Economy is Strong 

The Seasonal Spring Surge. 

The Big question is, 

Will the Coronavirus  have an affect on our Market? 

I'm sure it will.  To what degree remains to be seen. 

In the meanwhile, Buyers should take advantage of Low Rates  

and Potential Lowering of Prices due to Economic Uncertainty  

caused by the Health Scare.

Looking Back at 2019 and Forward to 2020

As Always, the Big Question is,

"What's going on with the Real Estate Market?"

Before we Look ahead to 2020, let's take a look at how we did in 2019.

Or as I joke in saying, "A 2020 Hind-Site"  

 

For the Year 2019, we had a Median of 6% and an Average of 7 % Equity Growth.

Not Bad... FYI, Condos did even better than that.

 In 2018 Equity Growth was around 9% and back in 2017 it was over 12%.

So the Growth has been good but is now slowing down.

Now let's look ahead to 2020

 I could write about all the Construction Projects, Casino Resorts 

and Conventions feeding our Las Vegas Economy, but we all know about all of that.

But even with all that's going on, I don't see Home Values Going up more than 5-6%

Las Vegas wages will only go up so much, creating an Affordability Ceiling,

which is getting close to being Maxed Out.

What will most likely Push the Market is the Rising Rents.

There have been several articles in the LVRJ about how Large Corporations 

are Investing in Apartments because of the High Demand and Profits.

Las Vegas Home Ownership Rate is around 58% 

Down from a high of 63% in 2005 but up from the low of 50% after the crash.

These numbers are well below the National Average of 65%

People need to Stop wasting Money Renting and Invest in Their Future.

What is Your Money Worth?

The Newest Biggest Thing in Real Estate is iBuyers.

What is an iBuyer?

Zillow, Opendoor and Offerpad are iBuyers.

They are Tech Giant Corporations that are claiming that they 

are a better option than using a local Realtor.

They claim they are simplifying the Selling process.

And if you already haven't noticed,

they are all marketing heavily in Las Vegas to Buy your House.

So it is true?   maybe...  But at what cost?

When you Sell with an iBuyer, they give you an Offer Price.

Then as you read through the contract, you discover all the fees.

According to Collateral Analytics, a Research firm,

the average fees are from 13% to 15% (lets call it 14%)

Interestingly enough, they calls these fees "Convenience Fees".

They have to make enough money to pay the costs of two transactions, 

carrying costs of their money, repair costs, 

and they also end up paying the Realtor fees on the sale of the home

 and PROFITS.

When you Sell with a local Realtor, 

the average fees paid are 5% - 7% (lets call it 6%)

So to use an iBuyer, it is going to costs you an Additional 8%

In Henderson, the average Home Price is around $425,000

8% of that is $ 34,000

In Las Vegas, the average Home Price is around $350,000

 8% of that is $ 28,000

 How long do you have to work to make that much money

Is it worth it to you?

What is your money worth?

Other Issues to consider...

When you work with a Realtor, the Realtor is working for you. 

Looking to maximize your bottom line,

protecting you throughout the transaction.

iBuyers are trying to get the best deal they can, and they are aggressive.

When you use an iBuyer, those profits go to Seattle, Arizona or San Francisco.

When use use a local Realtor, that money stays in our economy.

When you use an iBuyer, their goal is to sell it fast and cheap,

lowering the costs of Comps in your neighborhood which lowers home values.

When you use a local Realtor, the goal is to Sell for Top Dollar 

keeping Home Prices in line.

When a Home is being Sold by an iBuyer,

it's always vacant, which is resulting in more break ins and crime.

Some Feedback from people who have used an iBuyer is:

they have an Inspection done and use it to have priced lowered...

they tell you there fees are the same as using a Realtor...

you don't know how much you're actually getting until the end...