It makes me crazy to hear reporters crying that the housing market is going to hell in a hand basket simply because prices are no longer skyrocketing. I guess it sells newspapers (I know, that's not really a thing now, but that's not the point). These stories cause buyers and sellers to sit on the fence waiting to see what will happen next, and thereby contributing to - what happens next!
Housing prices in Nevada are among the fastest-rising of the top 20 markets in the country, yet because the trajectory has slowed our own Las Vegas Review Journal just stated, "resales have tumbled, the once-depleted inventory of available houses has soared, and price growth has slowed." I'd share a link to the story, but I don't want everyone to be forced to pay the LVRJ 99 cents to read a lame story that I find somewhat difficult to follow. The headline blares a problem, but the numbers in the story belie the headline.
Las Vegas does have a serious issue with a lack of affordable housing, and that's slowing sales - but it's hardly time to say slowing price increases are a problem. Las Vegas home prices are up 9.7% from February, 2018 to February, 2019, according to the S&P CoreLogic Price-Schiller Index. That is more than double the national average price increase of 4%. Winning.
Los Angeles, San Diego, and San Francisco are very possibly about to see home prices decline for the first time since 2012, according to CoreLogic. So when I read that our market "likes to tout it's cheap prices compared to California," it makes my blood boil just a bit. Our median home price is still at $300,000 - so, yeah, we have boasting rights.
What I can't figure out is why more Californians are moving to Washington, Arizona and Texas than to Nevada, where we pay no state income tax. But that's just an aside.
According to the Greater Las Vegas Association of Realtors, 2872 single homes sold in April. That's up 9.6% from March. Sales are down 0.2% year-over-year, so the LVRJ writer manufactures a crisis?
Inventory has risen to 7435 homes; although inventory is up 4.9% for April, we have less than a 3-month supply. This is a healthy market other than the affordability problem. If that changes substantially, I'll don the LVRJ's Chicken Little mascot costume and announce it's time to panic. I do not see that happening.
Local homebuilder Larry Canarelli just sold his homebuilding business to Pulte Homes, which plans to retain Canarelli's America West brand. Pulte picked up 1200 building lots, which total about 200 acres, for $150m. Mr. Canarelli still owns about 6000 acres. I am available for adoption, Mr. C.
As always, feel free to call or text me at 702.279.2466, or shoot me an email at Robin@NeighborhoodLV.com, if you have any real estate questions.