On Friday, a panel of experts at the Las Vegas Housing Outlook told the audience of sales agents, builders and lenders that they can expect more investors and higher prices in the next year.
Although they agreed it is difficult to predict what will be happening with Real Estate in the long run, they do agree about what to expect in the short run. New homes have shown increased sales and traffic. Take weekly traffic per subdivision, which roughly doubled in the past year. Net weekly sales per subdivision have skyrocketed, too, from around 0.1 in late 2011 to 1.3 today. That approaches the 1.6 sales per week of January 2006, though the market has just a third of the new-home subdivisions it had back then. Overall, local builders closed on 5,544 homes in 2012, up from 3,894 in 2011. Projections for 2013 are at 7,000.
As sales have grown, so have prices. The median new-home price has jumped to $227,081, compared with less than $200,000 last summer.
With finished lots getting scarcer, prices are going to go up even more. Where an acre of unimproved residential land ran $175,000 in December, it cost $300,000 by early March. Builders will need to price that increase into their homes.
Panelists do not predict a glut of homes in the next year as investors flip homes and the Legislature patched a state law that all but froze foreclosures. Even the largest investor groups don’t own more than a few hundred homes, so it’s not like any one group can dump thousands of homes on the market at once. Experts don’t see a flood of inventory even when investors start to sell.
Even though laws have made it easier for banks to foreclose, the panel doesn’t expect to see a huge increase in foreclosures in the near future. Instead most see short sales as being in the market place for a considerable length of time.
For more information on the Las Vegas Housing Outlook, click here; http://www.reviewjournal.com/business/housing/real-estate-expert-says-expect-some-big-booms-little-busts