Las Vegas Market Stats

It's time for your weekly dosage of market stats!  Here there are along with some other useful information to educate your clients!

Available:
5,853 Total
15% are bank owned
34% are short sales
51% are regular sellers

Put into Escrow:
1,467 Total
29% are bank owned
45% are short sales
26% are regular sellers

Closed Escrow:
707 Total
38% are bank owned
27% are short sales
35% are regular sellers

The big discussion since AB284 is inventory.  Where is it?  Are prices going to sky rocket again?  Once the banks figure it out, will they flood the market again?

Let's talk about what we've got going on right now.  In March 3,832 homes were listed for sale.  In March 2011 we listed 4,830.  That also happens to be the biggest deficit thus far compared month to month.  So yea, if you haven't been able to tell by the multiple offers above list price, inventory is WAY down... and, those banks that we've counted on to keep supplying us with homes are stuck under the AB284 law. 

I attended a meeting for the Las Vegas Real Estate Club about 3 weeks ago and my friend, Steve Hawks, summed it up nicely, he basically said that AB284 is only negatively affecting about 4,000 of us here in Nevada (that would largely by us real estate agents) and it's helping over 800,000.  What politician is going to use eliminating AB284 as a platform?  It's created a false boost in our economy.  Car sales are up... but I guess you can afford a nicer, newer car when you aren't paying your mortgage.

So, what is my point?  It's tight out there right now.  You've got to know how to work this market to make it through this market.  It's just like when we shifted to REO.  Those who were in it and committed, adjusted to the market.  

You've got to understand the market in order to adjust to the market.  There will be plenty of massively successful agents during this time.  Will you be on of them?

Las Vegas Market Stats

It's already been another week since our last look at the market stats for real estate in Las Vegas. 

Here's what we've got!

Available:  6,540 SFR and Condos

16% of those are bank owned

36% are Short Sales

48% are regular equity listings (That's CRAZY)

New Escrows: 1,635 SFR and Condos

28% of those are bank owned

47% are Short Sales

25% are regular equity listings

Closed Escrow: 1,150 SFR and Condos (Month end so number is larger than normal!)

40% of those are bank owned

25% are Short Sale

35% are regular equity listings

As of today, if we didn't put one more home on the market, we would have just over a 5 week supply of homes.  What does it mean?

Competition is fierce right now.  It's like a perfect storm!  GREAT prices and killer interest rates.  It's great for Sellers and Buyers.

Las Vegas Market Stats-How to Use Them to Sell Another House!

So, here we are again.  It's Monday which means Market Stats for the Las Vegas area.

These numbers are all SFR an condos in Las Vegas, Henderson, N. Las Vegas and Boulder City.

As of today there are ONLY 6,833 homes available.  We haven't seen inventory this low in YEARS.  As a matter of fact, the last time it was this low we had a super frenzy... you remember it as 2003-2006.

Of those 6,833 available homes 39% are Short Sales.  I realize that as rel estate professionals we all know what a short sale is.  I have, however, found that there are Clients reading these market stats and so to be sure everyone is clear a Short Sale is when the Seller is asking the bank to take less money than is owed.  For example:  The Seller owes $250,000.  The home is in escrow for $125,000.  The Seller would then ask the bank to take a shortage of $125,000.  Make sense?  It's a bank controlled sale, just like REO's.

Only 15% are REO's, or banked owned homes.  This is pretty low for us right now.  Though we've heard that some of the banks are finding ways to get through the recent AB284 which virtually halted all foreclosures, it will be a slow process getting the REO market back up and running. 

46% are Others, or Equity Sellers.  REGULAR people, well normally.  In todays market an equity deal is more than likely an investor who bought it at the auction and has repaired it to sell for more and make a profit.  46% is HUGE for this number. 

Last week we had 1,672 go into escrow.  47% were Short Sales, 29% were REO and 24% were Other.

And finally, 789 closed escrow!  28% were Short Sales, 41% were REO and 31% were Other.

Let's just look at the REO numbers so we can better explain to our Buyers how if/when they fall in love with that REO home, how they need to act to make sure they get it!

REO's are only 15% of what is available.  They are 29% of what went into escrow and 41% of what CLOSED.  What does that tell us?  (I just used a script on you, the same one you should use on your Buyers!)

The bottom line is that REO's are priced WELL.  That's why they move, quickley.  That's why there are multiple offers, almost instantly.  That's why most sell for MORE THAN list price.  These numbers tell us that if a Buyer wants to move on an REO, they need to do it NOW and put their BEST FOOT forward-in other words, don't try to low-ball this deal. 

As agents, we should ALWAYS pull comparables so that a Buyer can make an educated offer based on the recent market.  Just this past week I was assisting an agent who was working with some Buyers to write an offer on an REO.  This list price was $214,000.  The same model across the street with 1 less garage had just closed 2 months earlier for $240,000.  Based on what we know about REO's, what should the Buyers decide to do?

See, here's the good news; because you're reading this and now have this information, you'll be able to assist your Buyers in making a solid offer based on the facts-rather than the "let's see what happens" approach.

Clients appreciate an agent who knows the market-IT'S OUR JOB!

Take this ammunition and go get 'em!

Be Your Own Client

Here's a little challenge for everyone out there looking to improve themselves!

It's a something that I've asked all my coaching clients to do this week.

I want you to pretend that you are your client or customer.  You are dealing with YOU. 

Now, in your dealings with YOU what are 3 things that you need to improve on?

I'll give you some examples, these are some of the things my clients came up with;

• Know my presentation better so I can answer questions more effectively.
• Have a quicker response time to phone calls.
• Dig deeper into my clients "WHY" so I can truly guide them through the process.
• Help my clients feel more comfortable, not be so "black and white" about everything.

These are just a few.  This exercise is designed to keep you on your toes and more importantly, seeing your business from a different perspective. 

Once you've come up with three items to improve, create a system to implement the changes you want to see.  It can be as easy as adding a daily task to your calendar to call in your scripts. 

This is a healthy exercise.  I encourage you to do it after every transaction.  After every appointment.  After every phone call.  EVEN if you got the result you wanted from the appointment, phone call, etc.

Simply ask yourself:

"What did I do really well?"          

"What am I going to do differently next time?"

It's self accountability.  It's being aware that even at our best, there's always something we can improve on.  There's always room to grow!

Las Vegas Market Stats

Here are the market stats for last week in Las Vegas, NV!

8,177 available homes/condos/townhomes.  This doesn't include land or multiple dwelling units.

42% are Short Sale listings.

16% are REO, or bank owned listings.

42% are Other, equity listings.

Last week 1,723 went into escrow, has an accepted contract.

47% are Short Sales.

31% are REO's.

22% are Other's.

Last Week there were 1,041 properties that Closed escrow!

31% were Short Sales.

39% were REO's.

30% were Other's.

Currently there is a less than 5 weeks supply of homes on the market.  The inventory is trending downward which typically creates a rise in pricing.  With interest rates still at all time lows, it's an awesome time to buy a house!

In February 3,640 homes Closed escrow, 47% of those were asking LESS THAN $100,000. Of that, 52% were REO's.  Prices are low, inventory is lower and so are the interest rates.

The Market Stats posts are designed to help agents better understand the market.  As agents we simply provide market information to our clients in ways that make sense to them. 

How can you help your clients make an educated decision if you yourself are not educated? 

Check out my weekly Market Stat update!