Las Vegas Marketing Report
MARKET CONDITION REPORT
LAS VEGAS VALLEY
October 2007
Welcome to the Las Vegas Area Market Condition Report (MCR) provided by
Equity Title.
We
appreciate and value your business.
These
comments and opinions are designed to accompany the Market Condition
Report attached to this document.
SELLER
CONTRIBUTION: The measure returns the propensity of the buyer to
request—and the seller to provide—buyer points to expedite transaction
closing.
The
propensity for sellers to provide buyer support increased from September
to October. See the above comparison between the two time periods.
As a
generalization, and on the average, a good estimate of the seller’s
expected contribution is between 3.00 and 3.50% of the transaction value.
THIS YEAR
LAST YEAR
MARKET
OVERVIEW—CHANGE FROM PREVIOUS MONTH
Based on the
changes from the previous month, the market should be judged as continuing
to move toward the buyer. The rate of movement toward the buyer is
accelerating. This implies that price erosion will continue also, but at a
faster pace. Sellers who are motivated (willing to meet market price)
should make every effort to identify and move to market price as soon as
possible to maximize seller equity. This opinion is a virtual duplicate of
the September opinion.
The market is moving toward
the fall/winter cycle. This cycle usually manifests a reduced transactions
count. The combination of the current trend and entry into the cycle will,
all other things being equal, intensify negative pressure on the price
line.
The reader
should note the DISTRIBUTION SUPPLY/DEMAND table. The current ratio is 13
to 1—up from 11.3. to 1 in the previous month. However, higher-end
properties face ratios of 23 to 1 (23 competitors for each property in
escrow). The reader
should expect a continuation of the negative price trend with SFR moving
slowly toward 290K. Expect CONDO to demonstrate more price stability and
resiliency. The
strongest sub-market is Boulder City SFR. The weakest is Boulder
City/Central CONDO.
As a general rule, the
relative strength of markets can be deduced by the 60 DAY ABSORB RATE.
MCR
TIP
Listed is
the supply; Sales Per Month is the demand. Closing price is driven by the
interaction of these two variables over time. The economic “wants” and
“needs” of any one seller are not a part of this calculation.
WORDS
OF WISDOM
Do more than
is required. What is the distance between someone who achieves their goals
consistently and those who spend their lives and careers merely following?
The extra mile.
Gary Blair
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