Tuesday, July 29, 2014

Market and Economic Update for Las Vegas Valley Real Estate

Market Update for Las Vegas Valley Real Estate July 2014

Every month David Radcliffe, of the Radcliffe Group at Keller Williams Realty, summarizes what is taking place in the Las Vegas Valley as it relates to home prices. David reviews the statistics that matter most when investing in a residential real estate home purchase/sale. Tune in for the latest market updates and search his site for the property that will best meet your needs.

What are some of the numbers that matter most? 
  • What are the changes from last month? Quarter? Year? 
  • Are we seeing a fluctuating or stable market?
  • Available inventory and how it affects those purchasing vs. selling? How many days' supply of homes are available?
  • Number of closings.
  • Types of financing. 
  • Percentage of:
    • Short sales
    • Bank owned (often referred to "REO" Real Estate Owned) 
    • Traditional Sales.
July 2014-- This month we are seeing a pretty stable market with short sales (11.6%) vs. 9% bank owned properties and the majority being traditional sales (currently 79% of our market). Traditional homes sales create stability in the market place. Prices are increasing moderately, with multiple offers that contribute to slight competition between buyers writing offers. Well priced/correctly priced homes are only staying on the market for a sort time. This is great news for homeowners looking to sell. Take 3 minutes and watch Dave's update and subscribe to his channel for other updates and valuable educational material for the home buyer and seller.

David partners with multiple professionals in the Las Vegas area to bring you updates. Below is a national economic update on the real estate market.

Economic Update as of July 28, 2014
Provided by Kathie Potts, Loan Office, Prospect Mortgage in Henderson, Nevada

Existing home sales rose 2.6% in June to a seasonally adjusted annual rate of 5.04 million units. Compared to a year ago, June existing home sales were down 2.3%. The inventory of unsold existing homes on the market rose 2.2% to 2.3 million in June, a 5.5-month supply at the current sales pace.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending July 18 rose 2.4% from the previous week. Purchase volume rose 0.3%. Refinancing applications increased 4%.

New home sales fell 8.1% in June to a seasonally adjusted annual rate of 406,000 units. May’s initial reading of 504,000 units was revised to 442,000 units. On a year-over-year basis, new home sales were 11.5% lower than June 2013. At the current sales pace, there is a 5.8-month supply of new homes on the market.
Consumer prices rose 0.3% in June, following a 0.4% increase in May. Compared to a year ago, June consumer prices have risen 2.1%. Consumer prices at the core rate — excluding volatile food and energy prices — were up 0.1% in June.

Orders for durable goods — items expected to last three or more years — increased $1.8 billion, or 0.7%, to $239.9 billion in June. This follows a 1% decrease in May. Excluding volatile transportation-related goods, June orders posted a monthly increase of 0.8%.

Initial claims for unemployment benefits for the week ending July 19 fell by 19,000 to 284,000, the lowest level since February 2006. Continuing claims for the week ending July 12 fell by 8,000 to 2.5 million, a new recovery low. The less volatile four-week average of claims for unemployment benefits was 302,000, the lowest level since May 2007.

Upcoming on the economic calendar are reports on pending home sales on July 28, the home price index on July 29 and construction spending on August 1.

Written by Nickel Lowman and Prospect Mortgage
Dave Radcliffe, CFAC, CDPE
The Radcliffe Group of Keller Williams Realty Southwest