The overabundance of available homes and its impact on the future of the Las Vegas market has been a major concern for potential buyers and investors.
Recent reports show however, that sales have been increasing and the inventory of new homes has dropped for six consecutive months.
Fact #1 - New Single Family Homes Sales Increase by 4.8% - 37% in the West.
Sales increased to 770,000 in September, an unexpected rise over the estimated 3.1% decline. The West region showed the sharpest gain at 37%.
Fact #2 - The Supply of Unsold New Homes is Dwindling
Six months of consecutive inventory drops brings the supply of unsold new homes to 8.3 months, or 523,000 homes. This number is a 6.6% decrease over last September’s count of 560,000 homes. As the supply decreases, builders will be able to sell at a higher price points, as opposed to lowering prices and adding incentives to close sales.
Fact #3 - Price of New Homes is Up
September showed a 5% increase over last year with the median price of new homes sold going from $226,000, up to $238,000. The increase is an indicator that the demand and ability to obtain loans are both improving.
The combination of builders slowing down production and cutting prices has led to more homes being sold and has contributed to a decrease in new home inventory over the last six months. This trend is a good sign, because as inventories decrease, the market will continue to improve.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment