2016 HAS BEEN A GOOD YEAR FOR LAS VEGAS

As in every January, I review the sales for the past year and I am happy to report that 2016 was indeed a very good year for the Las Vegas real estate market. Sales levels in most areas have gone up quite a bit from 2015 and we have also seen a modest but steady appreciation gain in values (complete appreciation in values will be compiled in the next couple of weeks and I will promptly bring them to you) . Although small when compared to 2013 which pretty much saw the end of the investors fueled buying spree, a steady appreciation in value is healthy and sustainable. MLS data is reporting the following sales for 2016:

AREA SFR SOLD IN 2016 CONDO/TWNH SOLD IN 2016 SFR SALES GAIN 2016 VS. 2015 CONDO SALES GAIN 2016 VS. 2015
NORTH 101 439 39 15.03% 43.59%
NORTH 102 2080 80 4.81% -1.25%
NORTH 103 3569 326 5.72% 25.15%
EAST 201 502 44 20.52% -11.36%
EAST 202 664 268 6.93% 19.78%
EAST 203 821 137 15.10% 12.41%
EAST 204 1284 248 4.05% 4.84%
SOUTH 301 617 543 4.86% 19.89%
SOUTH 302 907 433 18.19% 22.63%
SOUTH 303 1681 359 2.74% 18.66%
NORTHWEST 401 255 44 -13.73% -15.91%
NORTHWEST 402 1064 346 -5.55% 20.23%
NORTHWEST 403 932 615 9.44% 2.44%
NORTHWEST 404 1508 380 2.79% 11.32%
NORTHWEST 405 2663 365 9.01% 0.55%
SOUTHWEST 501 558 258 9.86% 13.18%
SOUTHWEST 502 1510 348 -0.79% 12.64%
SOUTHWEST 503 1452 857 11.02% 17.97%
SOUTHWEST 504 1848 216 8.28% 28.70%
SOUTHWEST 505 1890 130 9.79% 11.54%
HENDERSON 601 363 206 6.34% 25.24%
HENDERSON 602 1035 384 -6.18% 20.05%
HENDERSON 603 472 97 19.92% 12.37%
HENDERSON 604 548 35 12.59% 0.00%
HENDERSON 605 984 166 12.30% -4.22%
HENDERSON 606 2092 317 0.96% 19.56%
TOTAL SALES 31738 7241 7.08% 12.69%

You probably have heard that the Feds have raised interest rates in the last quarter and consequently mortgage rates have gone up accordingly. I still don’t know if the higher interest rates will have a permanent effect on 2017 sales but I remain confident in the Las Vegas market after seeing these results. Our market is still undervalued when compared to California and most other states in the West, but I can’t say the same about the stock market. The Dow Jones and Nasdaq have had a great run in 2016 however I would very cautious in the near future about putting my money into the stock market. A stock market crash could leave you empty handed with a sour taste in your mouth while a good investment in real estate is ALWAYS secured by a solid and tangible asset. Remember that you have made no profit or experienced any loss until the day you sell, regardless of what the market does. For the time being, I think that there are many opportunities for homeowners to buy great properties to hold on to. At the same time, opportunities to flip properties have mostly disappeared from the market while a good cash flow for investors can be had by purchasing condos. As always, please contact Sergio or Kellie if you want to know more detailed info about specific properties or Market Analysis for certain areas. I wish you and your family a Happy New Year and may 2017 bring you all the joy and happiness you deserve.

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