INFORMATIVE
synergy
ACCURATE
Sotheby’s international realty
CURRENT Las Vegas Market Update
TIMELY
A Look Back
L a s Ve g a s , 2 0 1 1
As we look back on 2011, we find ourselves starting to see the real estate market stabilize and a glimpse of a recovery as more and more people took advantage of the downward pressure in pricing. We also saw improvements in short sales, including those in the higher market segments, many of which are now being completed within 90 days. This is promising for those looking to sell but have been reluctant due to market conditions and untenable lender conditions to this point. We hope you enjoy our annual market report in an effort to provide a comprehensive analysis of the Las Vegas market with a more detailed look at some of our most prestigious communities. It is our intent to provide this information for educational purposes, not to be considered for a fair market value assessment of any single property. If we can be of any further assistance, please let us know. - Synergy Sotheby’s International Realty
Market Over $500,000
For Buyers While there was not as much activity in this segment, those that did participate were able to get some excellent value opportunities. Â We saw the beginning of a trend for those looking to move up into that next level of home.
For Investors
Types of transactions sold over $500,000
A select group of long-term investors have started looking at this segment in earnest as it has much better value opportunities than at the lower levels due to less competition.
For Sellers We did see some improvements in the timing and success of “short sales� at the higher levels. As to be expected, there continued to be a market for those unique and distinctive properties which held their value more so than other properties in the higher segments. However, with less activity at the upper levels, downward pressure on pricing overall continued to be significant factor.
Types of financing in homes sold over $500,000 5%
24%
44%
59%
17%
50%
Short Sale
Cash
Bank Owned
Conventional
Traditional
FHA
Market Under $500,000 For Buyers
Types of transactions sold under $500,000
Types of financing in homes sold under $500,000 2% 5%
4%
21%
45%
50%
51%
Cash
Conventional
Conventional
Other
FHA
For Investors With a very robust rental market coupled with record low housing prices, we had a significant amount of investor activity in this segment of the market. While there were many who were successful at “flipping” properties, this strategy seems to be waning due to the amount of competition. As the gap between acquisition and final sales price continued to narrow, so did the profit margins we had seen in the past.
For Sellers
22%
Cash
With over 93% of total transactions occurring under $300K, this segment was very active this past year. Despite having a considerable amount of investor activity, many first-time home buyers or those relocating found great opportunities. Many of the bank-owned properties had a 30-day provision reserved for owner-occupied buyers which provided a first-look advantage over the investors.
VA Other
Sellers continued to face challenges with almost half of all listings being classified as a “short sale”, which can be the most difficult to close. However, for those who were not “underwater” and were priced to market, found that they had an advantage over the competition and sold more quickly. Price competition from bank-owned properties continued to make it challenging for sellers.
Number of Single Family Homes Sold in 2011 15,000
12,000
9,000
6,000
93% of All Sales in Southern Nevada
00 ,0
00 $5 00 ,0
51 $4 00 ,0
01 $4
00 ,0 51 $3
00 ,0 01 $3
00 ,0 51 $2
00 ,0 01 $2
00 ,0 51 $1
0 00 0, 45 -$
0 00 0, 40 -$
0 00 0, 35 -$
0 00 0, 30 -$
0 00 0, 25 -$
0 00 0, 20 -$
0 00 0, 15 00 ,0 0 10
-$ -$
00 ,0 01 $1
0 00 0, $5
0 00 1, $5
er nd U
-$
up d an 00 00 ,0 ,0 00 01 ,0 ,0 5 $5 -$ 0 00 00 ,0 0, 01 00 ,0 4, $4 -$ 00 00 ,0 ,0 00 01 ,0 ,0 $3 $3 00 00 ,0 ,0 00 01 ,0 ,0 $2 $2 0 00 00 ,0 0, 01 00 ,0 1, $1 -$ 0 00 0, 50
$4M - $5M $2M - $3M $500 - $1M 401-450 301-350
201-250
101-150
Under $50k 0
5 5 11 22 117 543 188 333 538 758 1,488 2,825 2,328 10,608 11,976 6,313 3,000
40,000
$400,000
35,000
$350,000
30,000
$300,000
25,000
$250,000
20,000
$200,000
15,000
$150,000
10,000
$100,000
5,000
$50,000
0
$0 2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Average Sales Price
2011
Number Sold
Average Sales Price
Number of Single Family Residences Sold
Single Family Homes Historical Data
Henderson
SEVEN HILLS • ROMA HILLS • MACDONALD HIGHLANDS FOUNTAINS • ANTHEM COUNTRY CLUB • LAKE LAS VEGAS
Seven Hills
Filler
While the number of transactions in Seven Hills decreased slightly, the median sales price increased while the number of short sales decreased. This gives us the indication that Seven Hills is stablizing as a whole. While there may still be pockets of trouble, overall, it may be time to take another look.
Market Update
2010 2011 ďż˝
# of Transactions
Average Sales Price
Median Sales Price
% REO
% Short Sales
33
$980,194
$855,000
24%
30%
24
$971,681
$870,400
29%
25%
(9)
($8,513)
$15,400
5%
(5%)
Roma Hills
This enclave of custom estates located in the foothills above Green Valley Ranch saw a decrease in transactions but an increase in average sales price. Bank Owned and Short Sale transactions decreased, which may be an indicator of a stabalizing neighborhood.
Market Update
2010 2011 ďż˝
# of Transactions
Average Sales Price
Median Sales Price
% REO
% Short Sales
17
$814,353
$781,000
47%
41%
8
$880,875
$759,500
25%
38%
(9)
$66,522
($21,500)
(22%)
(4%)
MacDonald Highlands
This
distinctive custom home community nestled in the
Black Mountains
Las Vegas Valley, and is home to some of the most notable custom homes bordering the Dragonridge golf course. overlooks the entire
Market Update
# of Transactions
Average Sales Price
Median Sales Price
% REO
% Short Sales
34
$954,468
$667,500
32%
32%
39
$707,962
$638,000
18%
41%
5
($246,506)
($29,500)
(14%)
9%
2010 2011 ďż˝
Fountains With
tree lined streets, this custom home development is unique with a feel
much different from that of the traditional
Las Vegas
style homes.
While
there was slightly less activity in this development, pricing was affected by a few bank-owned properties that brought the average sales price down.
Market Update
2010 2011 ďż˝
# of Transactions
Average Sales Price
Median Sales Price
% REO
% Short Sales
7
$771,429
$740,000
0%
43%
6
$578,083
$540,000
67%
33%
(1)
($193,346)
($200,000)
67%
(10%)
Anthem Country Club
This exclusive guard gated golf neighborhood features upper end production, custom and semi-custom homes. Anthem offers a championship golf course, stadium quality tennis courts, clubhouse, lush resort style pools, state of the art fitness center.
Market Update
2010 2011 ďż˝
# of Transactions
Average Sales Price
Median Sales Price
% REO
% Short Sales
119
$666,980
$555,000
24%
30%
112
$588,376
$482,450
19%
27%
(7)
($78,604)
($72,550)
(6%)
(3%)
Lake Las Vegas
Lake Las Vegas has suffered some difficult press and harder times, but things are looking up. With two builders actively building three communites and both the number of bank owned and short sales decreased from last year, it is time to dispell the rumors and take a hard look at Lake Las Vegas for your home.
Market Update
2010 2011 ďż˝
# of Transactions
Average Sales Price
Median Sales Price
% REO
% Short Sales
73
$426,618
$355,000
41%
27%
68
$466,121
$330,000
24%
4%
(5)
$39,503
($25,000)
(18%)
(23%)
12% April had the highest number of sales in 2011 over $500,000. January had the least amount of sales with only 6%.
89135 was the zip code with the most activity. Over 19% of all sales over $500,000 were within 89135. 89121 had the least amount of sales with .16%
89135
SothebysRealty.com had over 4 million unique visitors in 2011, 38% of which were from outside the United States.
“I have been waiting for more than five years to offer this advice. It is now time in most cities across the country to buy a new home or refinance your existing home with thirty-year fixed rate mortgage debt.” - John R. Talbot 12/20/11 A truly magnificent location, nestled in Makena on Maui’s South shore, this estate provides direct views of the blue pacific, white surf and year round sunsets. This estate sold for $27,000,000.00 in July by Island Sotheby’s International Realty.
40 There were 40 homes over $2,000,000 sold in Southen Nevada in 2011, 9 of which were over $4,000,000.
In addition to our market knowledge, Synergy Sotheby’s International Realty has the worldwide reach of the brands network of over 500 offices across more than 40 countries and territories.
With nine out of ten buyers beginning their real estate search
LIKE NO OTHER
online* the plan to sell your home must utilize proper Internet exposure. Our approach includes websites far beyond sothebysrealty.com in an effort to target buyers on the web. Specifically, we employ ListHub to power the distribution of listings our network represents to all of the leading websites where consumers search for real estate. ListHub also provides comprehensive marketing reports that detail the traffic generated for your home on each of these websites, including sothebysrealty.com.
Las Vegas
The Ridges • Tournament hills • Mountain trails • canyon fairways Eagle hills • bellacere • willow creek • the palIsades • the vineyards red rock country club • country club hills • queensridge Southern highlands
The Ridges
Located
at the foothills of the
Spring Mountains, this
highly sought-after
guard gated community continued to see a significant number of transactions
2011 as pricing declined slightly giving way to opportunity for those looking to make a move up. over the course of
Market Update
2010 2011 ďż˝
# of Transactions
Average Sales Price
Median Sales Price
% REO
% Short Sales
20
$2,804,825
$2,400,000
5%
20%
24
$2,376,295
$1,935,288
8%
21%
4
($428,530)
($464,712)
3%
1%
Tournament Hills
This luxury custom home development borders the TPC Summerlin golf course, home to the annual Justin Timberlake Shriners Hospitals for Children PGA Tour event and is one of the most prestigious neighborhoods in Las Vegas. There was less sales this year, than last, but there were some noteworthy sales.
Market Update
2010 2011 ďż˝
# of Transactions
Average Sales Price
Median Sales Price
% REO
% Short Sales
5
$1,876,200
$1,740,000
40%
0%
3
$2,630,000
$1,690,000
33%
0%
(2)
$753,800
($50,000)
(7%)
0%
Mountain Trails
This custom home development had a very large increase in sales volume from 2010, due in part to some lower priced opportunities that came up throughout the year.
Market Update
2010 2011 ďż˝
# of Transactions
Average Sales Price
Median Sales Price
% REO
% Short Sales
1
$1,600,000
$1,600,000
0%
0%
9
$1,153,889
$1,100,000
22%
33%
8
($446,111)
($500,000)
22%
33%
Canyon Fairways
The custom homes of this community serve as a boundary for the TPC Las Vegas golf course and are known to have expansive views of the Las Vegas Valley. With only a slight reduction in sales price values over 2010, this community did see some additional activity.
Market Update
2010 2011 ďż˝
# of Transactions
Average Sales Price
Median Sales Price
% REO
% Short Sales
7 9
$1,297,459 $1,290,556
$1,297,208 $1,100,000
0% 0%
14% 0%
2
($6,903)
($197,208)
0%
(14%)
Eagle Hills
This
guard gated community, set in the heart of
considerable increase in sales volume over
2010
Summerlin,
showed a
while maintaining its average
and median sales price.
2010 2011 ďż˝
Market Update
# of Transactions
Average Sales Price
Median Sales Price
% REO
% Short Sales
4
$916,125
$868,750
0%
0%
8
$947,000
$858,000
13%
38%
4
$30,875
($10,750)
13%
38%
Bellacere This
guard-gated community of luxury homes features some of the most
extraordinary views of the
Las Vegas Strip. This intimate community is nestled PGA
within the Summerlin master plan and is located just outside of the public
Tour
course.
Succumbing
to some downward pricing pressures there were
significantly more sales this year than last year as individuals took advantage of these great values.
Market Update
2010 2011 ďż˝
# of Transactions
Average Sales Price
Median Sales Price
% REO
% Short Sales
4
$2,768,500
$2,900,000
0%
0%
8
$1,149,363
$867,500
25%
0%
4
($1,619,137)
($2,032,500)
25%
0%
Willow Creek
This enclave of luxury homes experienced a slight increase in average sales price, resulting from two key sales earlier in the year and came close to maintaining their year on year median sale price.
Market Update
2010 2011 ďż˝
# of Transactions
Average Sales Price
Median Sales Price
% REO
% Short Sales
9 8
$789,989 $984,000
$850,000 $812,500
22% 13%
22% 38%
(1)
$194,011
($37,500)
(10%)
15%
The Palisades
Filler
This guard gated development within the Summerlin Master Planned community saw a significant increase in activity over the year, due in part to a few exceptional pricing opportunities that took place in the spring and fall which brought the average and median sales price down.
Market Update
2010 2011 ďż˝
# of Transactions
Average Sales Price
Median Sales Price
% REO
% Short Sales
6
$809,167
$834,250
0%
17%
12 6
$718,292 ($90,875)
$736,450 ($97,800)
42% 42%
8% (8%)
The Vineyards
Filler
This private guard gated community within Summerlin remained relatively stable in terms of sales activity despite having a minor overall pricing decrease.
Market Update
2010 2011 ďż˝
# of Transactions
Average Sales Price
Median Sales Price
% REO
% Short Sales
11
$672,455
$710,000
27%
27%
10
$620,293
$645,500
0%
10%
(1)
($52,162)
($64,500)
(27%)
(17%)
Red Rock Country Club Set against the beautiful backdrop of Red Rock Canyon, this premier Country Club residential development is home to two golf courses and continues to be in high demand with luxury buyers. This year showed a similar level of sales volume from 2010 while experiencing a decline in both average and median sales price early in the year.
Market Update
2010 2011 ďż˝
# of Transactions
Average Sales Price
Median Sales Price
% REO
% Short Sales
91
$809,825
$700,000
19%
34%
86
$784,893
$622,500
19%
26%
(5)
($24,932)
($77,500)
0%
(8%)
Country Club Hills
Filler
Bordering the private Tournament Players Club (TPC) Summerlin golf course, this private community also showed an increase in sales volume with only a slight decline in average and median home prices over the year.
Market Update
2010 2011 ďż˝
# of Transactions
Average Sales Price
Median Sales Price
% REO
% Short Sales
6
$650,667
$637,500
0%
17%
10
$619,200
$613,500
10%
40%
4
($31,467)
($24,000)
10%
23%
Queensridge This
master planned community is home to the challenging
course and provides a variety of landscapes throughout.
Badlands
golf
The luxury segment
of this community saw an increase in sales activity as well as an increase in the average and median home sales pricing, due primarily to some significant sales in the fall.
Market Update
2010 2011 ďż˝
# of Transactions
Average Sales Price
Median Sales Price
% REO
% Short Sales
32
$586,337
$520,500
25%
28%
41
$884,066
$568,000
22%
24%
9
$297,729
$47,500
(3%)
(4%)
Southern Highlands This
master planned community anchors the southern portion of the valley
and with its world-class golf course serve as one of the most distinctive developments in
Las Vegas. The
luxury segments within the community saw a
decrease in activity over the year but saw an overall improvement in average and median sales pricing.
Market Update
2010 2011 ďż˝
# of Transactions
Average Sales Price
Median Sales Price
% REO
% Short Sales
50
$1,051,586
$850,000
24%
24%
35
$1,256,509
$1,075,000
26%
17%
(15)
$204,923
$225,000
2%
(7%)
It took me seventeen years to get three thousand hits in baseball. I did it in one afternoon on the golf course. - Hank Aaron
Perspectives L a s Ve g a s , 2 0 1 2
While
Market Over $500,000
Market Under $500,000
For Buyers
For Buyers
a number of “treasures” were picked up in
2011, there
are
likely to be some more opportunities for the discerning buyer in sale and bank owned properties will continue to be
While the overall inventory has been reduced and the number
a part of the landscape, but they are no longer as challenging
of bank owned properties coming to market has slowed
2012. Short
to close as in the past.
This
provides more options for those
willing to give consideration to these properties in which most have shunned or disregarded due to the challenges in closing.
This
new year should continue to offer opportunities for those
taking advantage of market conditions and perhaps advancing
considerably, the number of opportunities has been reduced as well.
This is not to say that there are not opportunities to be had, but rather it takes more time and effort to get the great deals.
their schedule in moving up to the next level of luxury.
For Investors
For Investors There have been a number of successful “flippers” who have entered
Investors
have been very active over the past three years and
the luxury segment of the market and found returns with
will continue to be a large part of the market.
discounted materials and labor at their disposal.
are not as easily found as they once were with the reduction
is likely to continue in
This opportunity
2012, but the greatest opportunities will be
had by those real estate investors looking to buy and hold while receiving rental income all the while.
of available inventory.
The
returns
While there is still an active “flippers”
market, it has diminished somewhat and replaced by investors establishing or expanding their rental real estate portfolio.
For Sellers
For Sellers There is always a market for high-quality and very distinctive properties, and that continues to hold true for our market. However, the higher end of the segment has been hampered
As
by downward price pressure as the number of buyers has
pricing objectives.
decreased significantly.
buyers are looking
properties come to market and as more short sales are being
at the value opportunities and those priced to market are
successfully sold in shorter amounts of time, competition
selling, although with longer timeframes than we have seen
with the traditional sales may become even greater.
in the recent past.
Presently, most
we continue to see pricing bounce along the trough of
our market, it is critical for sellers to be realistic in their
We
will continue to see bank-owned
THE WORTH OF A HOME can be found in details that truly define uniqueness - as simple as a centuries
LIKE NO OTHER
old fireplace that retains the historic prominance of a time past, or as grand as a rooftop promenade atop a landscape of city lights. So, to us, It’s not about the size of the property, the number of bedrooms, or even the price, but more about the distinct character that makes a home noteworthy of being called exceptional.
This is our world. Because the worth of a home is defined in it’s details.
o 702.360.1414 f 702.360.1199 www.SynergySIR.com
®,™ and SM are licensed trademarks to Sotheby’s International Realty Affiliates, Inc. An Equal Opportunity Company. Equal Housing Opportunity. Each Office Is Independently Owned And Operated, Except Offices Owned And Operated By NRT Incorporated. If your property is listed with a real estate broker, please disregard. It is not our intention to solicit the offerings of other real estate brokers. We are happy to work with them and cooperate fully. This report is intended to provide insight into the Las Vegas Residential resale market based on historical data. The data used in this report was obtained from multiple sources including the Greater Las Vegas Association of Realtors® (GLVAR) proprietary Multiple Listing Service database. All information contained herein is deemed to be accurate, but not guaranteed. This report focuses solely on Single Family Residential (SFR) properties, not including Condominiums, Condominium-Conversions, Townhomes or Manufactured Housing unless otherwise noted. The information contained in this report is based on the MLS areas of 101-606 representing the greater Las Vegas, Nevada metropolitan area which includes Henderson, Nevada. Boulder City, Lee Canyon and Mt. Charleston are not included in the figures.