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DALE: Good afternoon, today's topic of discussion is going to be the Summerlin West 89138 Las
Vegas real estate market update for March 2014.
I'm Dale Snyder with The Snyder Group, a team driven real estate, here at Keller Williams
Realty. Your Summerlin specialist.
[Music]
Before we jump in, I want to make a note of one thing here that's super important, summerlinwestliving.com
that's going to be in the description below. But Summerlinwestliving.com is a website we've
put together for you, the people that live in the community where we live so you can
keep a pulse on what's going on.
So you can go there to see all the homes for sale and all the homes for rent in our zip
code. And you could also get restaurant reviews. And if you happen to be a business owner and
you'd like us to promote your business just shoot me a quick note because we want to make
sure that we're promoting all of the people who live in the area and the businesses around
our community.
There's a couple of other hot buttons right now too. One is going to be the Red Rock or
the Shoppes at Summerlin and then the rezoning of Givens Elementary, the potential rezoning.
So make sure to subscribe to this newsletter or subscribe to our YouTube Channel to make
sure you keep up to date on that information because it's critically important if you live
in the area to keep a pulse on this stuff because it impacts your housing value.
You can click here to subscribe. Alright, so let's jump right into the data of what's
going on in Summerlin West?
So the quick overview is what I want to start with, we are seeing inventory go up at an
increasing rate. I've got some great data here broken down by three different price
points; $250,000 and under, $250,000 to $500,000, and $500,000 and up. I'm going to go through
that in a moment but know that at the end of this video, on the description below you're
going to get access to this great content that we're putting together every month for
you. So let me start with a quick summary here. We are seeing inventory go up drastically.
We are in the spring season so that's, historically we see that, but if you look at the absorption
rate or the amount of time it takes to absorb the inventory that we have. When you go up
in the price points, it's dramatically increasing right now.
So let me start by just going over what the data is. So, right now, currently we have
72 homes for sale in the 89138 zip code. Ten of which are short sales, eight of which are
bank-owned, and here's the kicker, only one of these short sales was put on the market
this year.
Most of these short sales have been on and off the market, in and out of contract since
2012, some since 2011, which isn't uncommon. You know, most, how do I say this professionally...
Most short sales aren't negotiated properly and that's why there's such a delay. Others,
there's just a lot of hang ups and a lot of the short sales we're seeing on the market
now are ones that just have a huge amount of issues that go along with them; tax swings,
bankruptcies, haven't made my payment in four years, kind of stuff. So severely delinquent.
So there's a lot of those challenges as well.
Let me go into what's in contract right now. We currently have 54 homes in the zip code
in contract, of which 23 of them are short sales, 4 bank-owned and only 3 of the 23 short
sales have come on the market this year.
Some of them, I looked to see, some of them have been on the market since the early part
of 2011. That's three years these short sales have been lingering on our market. So what
I do is I like to include the short sales into the still actives because they're the
big question marks of what's going to happen. Are they still going to be here in two years?
So that leaves us with 95. And you'll notice when you go to Summerlinwestliving.com when
you look at how many we have active, those are still included as well.
Alright, so let us look at February. We saw 15 homes sell in the month of February. That's
down. As you look at this data, in the description below as I've mentioned, you'll see that historically
as of last year, the numbers are about where they should be. You know, January and February
were a little bit flipped flopped. We had more closings this January than we did January
of 2013. But this February we're down in closings as compared to February of last year.
So if you look at the 6-month rolling average were seeing about 25 homes sold per month.
If you look at last year as a whole, we averaged 28 homes per month, which ends up being about
a home a day. That was what we saw last year.
So back to February. One closed was a short sale, one was an REO, and one of the short
sales closed actually came on the market in 90 days or less, so that one closed quickly.
The rest all were lingering from years and years past.
Of the closings for February, 9 of the 15 were cash. So that's about 60%, or so are
all going to cash buyers. So let me jump into some analysis here of what I think is the
most important thing to cover.
If you, and we're going to pull these graphs up as I go, so we're going to start with the
$250,000 and under. If you look at the inventory, you will see the blue bar graph and then the
red bar graph. If you look at this graph you'll see that the amount of homes in ESCROW which
is the blue, and then the amount of homes available for sale in the red, I'm going to
tie this all together in a moment. Let's just go to the next price point.
If you look at the $250,000 to $500,000 inventory graph, look at the amount in ESCROW in the
blue purple and then the amount on the market in red.
Now take a look at the $500,000 and up inventory graph. The purple, the blue, which you can
barely see is the amount in ESCROW and the red are the available homes on the market.
So tying this together, I'm just going to quickly say what we have currently for absorption
rate of our current inventory based on the 90-day rolling average, and then I'm going
to tie this together.
You see in the $250,000 and under we have about a 4.36 months supply of inventory. In
the $250,000 to $500,000 we have a six months supply of inventory, and if you go in the
$500,000 and up we have a 12 months supply of inventory.
So seasonally, you're going to see that we see more sales in the summer time right? If
you look at the total sales graph, from the $250,000 under price point range you're going
to see some of the seasonality.
And then look at the $251,000 to $500,000 price range for our total sales, you'll see
that there is some seasonality in there as well. And then the $500,000 and up total sales.
So, here's our pulse right now, living and specializing in the area and selling more
homes than any other realtor in the area. In fact our team has sold as much as all the
top, out of the top ten, our team has sold as much as the other 9 combined.
So, I'm not telling that to brag it's just that we do have a good pulse on what's going
on in the area. We are seeing a lot of homes starting to come on to the market and when
you look at the rate at which our inventory is increasing, knowing that a 4 to 6 months
supply of inventory is a stable market.
And from my experience about 4 to 5 months supply of inventory is a stable market, where
it's not in the seller's favor or the buyer's favor. So in the $250,000 to $500,000 price
point right now you are seeing the market turning into the buyer's favor because of
the amount of inventory we have.
And if you're $500,000 and above, then it's definitely in the seller's favor. The $250,000
and under is where its, it's about stable. It's still a seller-buyer's market.
So in summary, if you're considering selling or buying in the area, the great thing is
as a buyer there's a lot of options right now. As a seller, as I've mentioned for many
months in these videos, you're going to have to price your property more aggressively.
This is not the time where you press the market.
If you do have a unique product, where it's on a unique lot, extremely upgraded, great
floor plan, one of the more desired subdivisions in this zip code then it's a little different.
There are still a good percentage of those cash buyers that are willing to pay a premium.
You know, we are getting ready to close one right now that had a unique lot and we are
getting over appraised value just due to the uniqueness of that property. The others are
taking longer to sell right now. You know, we have some that should be selling because
we're priced right with where comparable sales are but they're not selling just due to the
amount of inventory in the $250,000 price range to choose from.
So once again, this is Dale Snyder with The Snyder Group at Keller Williams Realty, make
sure to check out our website Summerlinwestliving.com. If you have any questions reach out to me
otherwise if you like the video make sure to "Share" it and have yourself a fantastic
day.