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Las Vegas Home Prices Rise -
Sales Slow
The median home price in Las Vegas was
$137,000, up 5.5% over December 1999, while the average price
jumped to $187,287, a rise of 13.8% compared to last year. (See
tables below.)
Unit sales continue their seasonal
downturn: December home sales totaled 1,374 compared to 1,360
in November. December sales were off 2% compared to December
1999. The average number of days it took to sell a home in November
was 55 while the selling price to listing price ratio soared
to 109%.
The Fed dropped short-term interest
rates by a half-point the beginning of January. Interest rates
for conforming loans are now below 7%, the lowest rate in two
years. Time to begin thinking about re-financing, especially
if you have PMI.
As the baby-boomers reach their
prime vacation and retirement home buying period, (see Future
Trends), demand will increase rapidly and may overwhelm current
inventory. This will propel prices upward and provide the appreciation
that has been sorely lacking in the Vegas real estate market
because of the incredible number of new homes being built.
Mortgage Rates
Mortgage rates have reached their lowest
point in the past two years.. We expect rates to trend downward
slightly over the next half year. The Fed will probably be lowering
short-term interest rates by one-half to a full point. Mortgage
rates usually factor Fed actions into their calculations three
to six months ahead. Mortgage rates won't drop too much further.
For an excellent site on finding
local interest rates and with many articles on the lending process,
see Mortgage Quotes.com. Remember one thing, always use a local
lender. That means a lender in the area where the property is
located. Real estate is a local business. There are local ordinances
and geographical considerations that an out-of-area lender will
know nothing about. These local considerations will, at best,
slow the process and at worst, after wasting precious time, the
out-of-area lender will say they can't make the loan.
Recent Trends
The median price has been rising
steadily. This reflects that more expensive homes are being built,
and sold. The average price took a large jump in June, then backed
down in July, then zoomed again at the end of the year. It is
still up substantially over last year.
Notice that homes are selling
for close to their asking price.
Sales Statistics for 2000
(single family homes) |
| |
Median1
Price |
Average2
Price |
Unit
Sales |
SP/LP3 |
DOM4 |
| Jan |
$131,900 |
$163,082 |
997 |
98.29% |
68 |
| Feb |
$134,500 |
$159,864 |
1,205 |
98.84% |
61 |
| Mar |
$135,000 |
$168,920 |
1,649 |
99.27% |
62 |
| Apr |
$135,000 |
$161,078 |
1,455 |
99.31% |
53 |
| May |
$135,000 |
$160,666 |
1,706 |
99.18% |
52 |
| Jun |
$136,000 |
$179,408 |
1,600 |
99.19% |
53 |
| Jul |
$139,000 |
$171,019 |
1,542 |
99.21% |
53 |
| Aug |
$139,426 |
$167,971 |
1,708 |
98.80% |
52 |
| Sep |
$139,992 |
$172,760 |
1,482 |
99.23% |
50 |
| Oct |
$139,900 |
$170,306 |
1,465 |
99.44% |
55 |
| Nov |
$141,000 |
$174,151 |
1,360 |
99.55% |
52 |
| Dec |
$137,000 |
$187,287 |
1,374 |
109.00% |
55 |
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