The median price of a condominium in Las Vegas was $200,000 in September- barely up from last years $199,700 for 0.2% appreciation. This number is down 3.1% from August’s median price of $206,500. (All prices not adjusted for inflation, data from GLVAR):
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Last month we looked at where listings, sales, and their ratio would be if they followed historical trends. These trends can be affected by a number of factors, e.g. economy, interest rates, buyer confidence, etc. However they can be useful in estimating the trend of market conditions.
The model accurately predicted this month’s sales number of 438 (Granted, I got a little lucky getting that close) However, since inventory increased slightly from 5552 to 5573, I missed my estimate of 5192. As inventory remained nearly unchanged from August, and sales dropped from 512 to 438 for a 14.5% decline, the ratio of sales to listings went from 10.8 to 12.7- representing over one year’s supply at the current rate.
With an excess of 12 sellers to every buyer, this will continue to put downward pressure on condominium prices. Sales traditionally slow down throughout the autumn months, even in good years, so I don’t anticipate any change in this trend for the next few months.
Las Vegas Condominium Sales April 04 to Dec 07 (est.)
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good morning,
i really love the charts. amazing!!!!!!!
i think we can call this an imbalance of supply and demand.
One factor I’d like to point out that’s greatly affected the condo market here in LV is condo-conversions. That’s been the craze over the last 2+yrs and when you see low end apts that you could’ve rented for $550-600 just 2yrs ago converted to condos & selling for $200k+, well it just boggles the mind.
We’re not talking ‘luxury condo living’ here.
In the NW Desert Shores area there’s a set of half-way decent apts (still traditional apts tho w/paper thin walls, tenant above or below, in back & on either side) that are going for $250k. There’s a TON of them on the market now, both for sale & for rent. (whose going to pay a condo rent for an apt?)
otoh, There’s now an apt shortage with rapidly rising rents in that sector. Something like a 1-2% vacancy.