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>>DALE: Good afternoon. Today's topic of discussion is going to be the Las Vegas luxury real estate
market update for February 2014.
This is Dale Snyder with the luxury division of The Snyder Group, team driven real estate
with Keller Williams Realty, here in Las Vegas Nevada.
So to prep you here, we're going to go over some data. That's going to be included at
the bottom of the video, at the bottom of the video here, where you can click at all
of these great data that we're providing for you. If you are receiving our luxury newsletter,
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The way that we've, let me back up, I'm going to go over the data then I'm going to give
you a pulse and summary on where are things are appearing to be heading. So we've broken
it down as always from the $500,000 to $750,000 price range, $750,000 to $1,000,000, $1,000,000
to $2,000,000 and then $2,000,000 and above.
Because each one of those markets is a little bit different and we want to differentiate
them a little bit here. So let's jump right in to the data.
So in January, we saw 46 homes sell in the $500,000-$750,000 price range with average
list to sale price at 96%, average sales price per square foot of $168 per square foot. The
most important information that I like to look at is where we're going moving forward
here, right?
We've calculated our ESCROW fallout rate, which is pretty accurate, we're going to start
doing this on a 90-day average so it will be more accurate. But based on the ESCROW
fallout rate from the previous months we're looking at about 50-51 sales in February.
Because we have 127 in ESCROW right now and the fallout rate for every 2.4 deals that
go into ESCROW, 1 closes.
So if you look at last February, we saw 28 sales. If that data is accurate, we're going
to see a huge spike in closings in that price range.
Let me take a quick look here in the $750,000 to $1,000,000. So we saw 19 sales in the $750,000
to $1,000,000 price range of which 95% of the asking price was the sale price. Can I
say that in anymore confusing? So, list price to sale price average, 95%.
Average sales price per square foot is $186. It's look to averaging about $200 a foot if
you look at the last year.
If you look at our potential sales for next month, based on our in ESCROW and our fallout
rate, we're looking at about 14 sales in February. There were 16 in February of last year. So
pretty close to about the same.
Looking at the $1,000,000 to $2,000,000 price range. There were 12 sales in the month of
January with an average sales price to list price of 93%.
And average sales price per square foot is about $250. $245 for the month but I looked
at every sale individually and it's about $250 per foot. I think the high we saw in
this range was like $400 a foot.
If you look at our ESCROW fallout rate and what's in ESCROW, we're looking at about 15
to 16 sales for the month of February. We had 11 in February of last year, so a little
bit of an uptick there. Going to be one of the better months. I think 21-22 is the most
sales we saw in the $1,000,000 to $2,000,000 price range last year but that's a seasonal
thing. Spring and the fall is when we see our highest amount of sales.
Alright, moving on to the $2,000,000 and plus. We saw three sales last month. We average
about 5 a month in the $2,000,000 price range.
The negotiation was great in the favor of the buyer in January. 74% of the sale to list
price, so quite a bit of negotiation room there. We're seeing on a 90-day rolling average
about an 84%. So buyers, 16% off of list price is what you're seeing on average for the sales
in the $2,000,000 plus. And the sellers, you obviously know that or if you don't, now you
do.
If you look at the average price per square foot, we're looking at about $300 a foot,
this varies. You know our highest sale for January was like $565 a foot.
You know, as you know, giving price per square foot isn't really the best thing to be doing
in the luxury market because the upgrades can vary drastically. But we just use that
as a benchmark so you can have a pulse on what we're seeing, that's obviously going
to vary drastically.
Okay, if you look at our ESCROW fallout rate, we're looking at 6-7 selling in the $2,000,000
price range. And we saw 6 sell last February.
The one thing that I didn't touch on that I want to tie into, and I'm quickly going
to bounce from one of this to the next is our current absorption rate which will tell
us the months supply of inventory based on what's going on in the market.
So looking at this, and this is where seasonality can throw this off. You know, often times,
this sector of the market the sellers take their homes off the market, and the buyers
they're out of the market during the holidays so we usually see an upswing.
So about 10 months supply of inventory in the $500,000 to $750,000 range. Ten month,
ten and a half month in the $750,000 to $1,000,000. And about 15 months supply in the $1,000,000
to $2,000,000 and a 2 year's supply in the $2,000,000 plus, which isn't uncommon in our
market.
So tying this all together, what we're going to be doing moving forward is we're going
to be tracking the amount of homes and estates coming on the market per month. So that way
we can trend to see how many more are coming on the market and how does that relate back
to the previous year at the same month. So we can get a better pulse on what's going
on with things.
The more data the better, right? So what I'm seeing here, on the ground of the luxury market
is a big upswing right now in sellers. You know, we work a lot with luxury, higher net
worth, coastal clients.
I'm getting referrals from luxury agents so we're seeing a big influx of the out of state
luxury owners getting ready to put their homes on the market. So we see the inventory increasing
quite a bit right now. I mean if you look at it, I've got the data here.
In the $1,000,000 and above we saw 49 homes come on the market last month and, what was
it, 9 on the market sold so far in the first 4 days of February. So that's 2 a day for
the month of February.
In the $1,000,000 plus we saw 17 sell. So we're seeing about a home every other day
come on the market and about a home and a half coming on the market. Inventory's definitely
coming up right now.
So the other important thing here, I've mentioned in the previous video is the amount of financing
happening in the luxury market. You know, I've looked at the 15 sales from January in
the $1,000,000 and plus in the Vegas Valley and 9 of those were financed. Well technically
8 were financed and one was an owner who carry.
So that's a huge percentage of them being financed. You know interest rates are projected
to go up this year. So that's definitely going to impact the buyer's position in the market.
So in summary here, it's looking to be a great year in the luxury market nationally and locally
here in Las Vegas. So if you're having thoughts of selling or if your home is already in the
market and you're not getting the results you're wanting or if you're a buyer looking
in the luxury sector. I encourage you to reach out to me so we can have an educated conversation
on what's going on in the market. And I can give you some of opinions on what may be the
best play for your specific needs.
This is Dale Snyder with the luxury division of The Snyder Group, team driven real estate
at Keller Williams Realty, here in Las Vegas Nevada.
Make sure to "Like" the video, "Share" it. If you got our newsletter feel free to "Share"
it. Give me some feedback. Are there other things you'd like to hear about that we're
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That's all we've got for today. Have a fantastic, fantastic week.