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>>DALE: Luxury sales are up nationally but down locally, why is that? We're going to
go into detail on that, in just a moment here.
So, its the luxury real estate market update for Las Vegas May 2013. I've got a lot of
great data to go over with you here today.
I've also got a great video that we're going to be putting together going over nationally
what's going on and where the buyers' are coming from. So be sure to watch the video
at the end. We'll explain to you how to get to that video as well.
I'm Dale Snyder with The Snyder Group at Keller Williams Realty, let's jump in.
[music]
So, in order to do this market analysis I've broken it down by some different price points
in the luxury sector. I went from $500,000 to $1,000,000, and then $1,000,000 to $2,000,000,
and $2,000,000 and above.
In Las Vegas, semi-customs, you can get them to $500,000. So, I feel we have to start the
luxury around $500,000. There's a couple of things that are important to note in our future
videos, so make sure you subscribe, in June I'll be breaking it down a little bit more.
We're going to be going of sales price, this month's data of list price and I'm going to
break it down by $250,000 increments and then $500,000 as we get into ultra-luxury, because
that will be more specific to your specific luxury estate.
So, just so you know, we're going to be going over $500,000 to $1,000,000, $1,000,000 to
$2,000,000, $2,000,000 and above.
[slide insert $500,000-$1,000,000]
Alright, so in the $500,000 to $1,000,000 price range for luxury estates in Las Vegas
we saw 30 sell in the last 30 days, 302 year-to-date, there are currently 200 in escrow, and 312
luxury estates on the market. And what I mean by in escrow, buyer and seller have agreed
on the price and just awaiting the closing.
[slide insert $1,000,000-$2,000,000]
In the $1,000,000-$2,000,000 price range, 26 luxury estates sold in the last 26 days,
72 sold year to date, 41 in contract or in escrow, and 125 currently on the market. In
the $2,000,000 and plus price range there are 8 that have sold in the last 30 days,
and 32 luxury estates sold year to date in the $2 Million and above price point. Nineteen
are currently in escrow and 119 are currently in the market for sale.
Important to note is going to be the absorption rate. So let's take a quick look at that.
[slide insert Absorption Rate]
In the $500,000-$1,000,000 price range we are seeing about a 3.8 month's supply of current
inventory based on what's sold. In the $1,000,000-$2,000,000 price range it's a 4.81 month's supply of
inventory. In the $2,000,000 and above we have a 14.9 months supply of current inventory.
I would also like to point out "days on market." So you'll see in the $500,000-$1,000,000 price
range the average days on market is 107. When you go to the $1,000,000-$2,000,000 price
range the average days on market is 166 days. Two million and above, average days on market
is 258.
Now this isn't anything that's earth shattering news, right? The higher the price point the
longer the days on market they're going to be, the more of a month's supply of inventory
that we're going to have because the higher the price point we get, the less buyers there
are obviously.
This last data, I'm very excited about sharing with you here, its really - at first it surprised
me but the more I thought about it and the more I analyzed and talked to other colleagues,
it made sense. So let's jump in here to this data.
[slide insert Year to Date]
Year to date, January 1st to May 17th in the $500,000-$1,000,000 range, we have seen 320
estates sell. Last year, during the same time frame we saw 743, a big difference. Looking
at the $1,000,000-$2,000,000 there were 72 estates that have sold since January 1st to
May 17th. Last year, there were 153 that sold in the same time period. Here $2,000,000 and
above but this year we sold 32 between January 1st to May 17th, last year 58.
Pretty drastic shift, right? Alright, in summary with all of this content I want to give you
a quick pulse and just think out loud with you a little bit about this. It's important
to note at first. AB 284 went into effect last October, that really bottlenecked inventory.
We also have SB 321, that's AB 284s big brother, that's probably going to be passed next few
weeks to a month.
In the description below, there's going to be videos that you can listen to where I've
interviewed a top attorney in town going over AB 284 and SB 321, and educate you on that,
as well. So in summary, why have we seen such a decrease in the amount of luxury sales when
we're seeing such a spike in sales and equity in the middle price range.
Well, here's my summary on that. The deals aren't there right now. A lot of the sales
that we were seeing were short sales, foreclosures, people that had to sell. They had to liquidate
their luxury property and make a transition. Where we've seen some recovering in the economy,
which - I hate to be a Debbie Downer, I'm not sure that this is going to be stabilized
or not. We've got a big bottleneck of distressed properties still coming, especially in the
luxury sector. So if I were to project out what we're going to see - and make sure you
catch the video at the end here that I've already referenced in the video, that talks
about where the buyer's are coming from.
Because there's an opportunity for you to capitalize on this right now but I do believe
that coming into the first quarter of next year we're going to start to see more distressed
properties in the luxury sector coming on to the market, as many of you know, the banks
are not filing Notice of Defaults and they're not foreclosing on these luxury properties.
So a lot of them are hidden, we're not even able to see that these properties are in distress.
Okay, so the other video that I referenced, you can click on the link here or you can
find it in the description below, talking about where the buyers are coming from.
In summary, there's a lot of shifting going on in the market and there's a lot of opportunity
to capitalize on this, especially on the luxury sector. If you have any questions, if you're
thinking about buying luxury property, or selling a luxury property, you know, reach
out to me and have an educated informative conversation with you. Because depending on
what market you're in, where you're located, it's going to drastically impact the advice
that I would give you.
This is Dale Snyder with The Snyder Group at Keller Williams here in Las Vegas Nevada
be sure to "Like" the video if you like it, "Share" it if you think anybody else would
find value in this information. Have an awesome day.