An update to the Las Vegas real estate market for December 2013.
Hello. Welcome to Todd Miller TV. Today we’re going to do a market update for December of 2013 and I’m going to give you some interesting statistics to help you make a decision whether you should buy, sell, invest, rent or whatever here in Las Vegas.
OK. So what everyone wants to know is how is the market and there’s three numbers that I can tell you that give you the best idea of how the market is. The first one is the total number of properties on the market.
Now we’re only talking about single-family homes. We’re not talking about high-rises, condos, townhomes. OK. That number – my board is falling over – 7320. OK? 7320 houses on the market. That is the total number, single-family homes.
Now the number of houses that sold in – now this number doesn’t mean anything unless you understand how big the market is. We have about almost two million people living in the metro area. So two million people, that gives us about 600,000 to 700,000 residential houses. So that’s like a percent of all houses that are on the market.
One in 100 houses, that’s not terrible. OK? That’s like in an average size 100-house subdivision having one – only one house available for sale. Now the numbers sold in the last 30 days is really interesting because then this puts it all into perspective and we have 2127 houses that have transacted just in 30 days.
So if you take the total amount on the market, you take this number in 30 days. You can figure out how fast houses disappear and that’s called the absorption rate and right now, it’s 3.4. Now what that is, is months. So if no new house is at the market, these houses at this rate would disappear in three, four months. Now where are the trends? A normal market is six months. That’s normal. OK? Right.
But six months ago, this number was two. OK. So this is where we’re going. We were at two. We were at three, four. Nobody knows where this pendulum is swinging. Is it going to come back to two? Is it going to swing to six? Is it going to stay there? Is it going to swing past six?
But I do know this. Everybody has opinions and some people – anytime the market changes, the fear starts coming out. Oh, the flood of properties, blah, blah, blah. Well, we haven’t really seen that. We haven’t seen a flood of properties with the normal number of properties on the market now. We still see multiple offers on some houses. Other houses are normal now. We put them in the MLS and we market them. We get – it takes 30 to 45 days that we start getting offers on them.
Sometimes we get a couple. Sometimes we just get one. These houses tend to start off a little overpriced. That’s back. We weren’t doing that before. Then they will have a price reduction too.
So this is sort of the market snapshot. This is December. It is a month that tends to be very dynamic. What we do know is in January, houses will hit the market because people will start to look to move or to sell after the holidays and even during the school year, they will do that. So a lot of people want to be in place for the next school year, however they want to do that. So anyway, these are the numbers. That’s the absorption rate. If you want to follow my videos, you can either just go to ToddMillerTV.com or you can follow my Twitter handle, @LasVegasTodd and then I have about 450 videos I think. You can go through to just type in, like to search for what you’re looking for and kind of go for that like home inspection or whatever.
Anyway, so that’s my update. I thought I would share it with you and hope to see you on another video. Thanks.