SalesTraq | FastFacts | July 2017



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New Home Sales and Permitting Activity Rise as Resale Inventory Remains Limited

THE BOTTOM LINE...The new home construction market in Southern Nevada continues to expand; the number of new home closings during July 2017 edged up to 635, a 6.2 percent increase compared to the same month of the prior year. On a year-to-date basis, closings are up 12.7 percent. Importantly, growth in the number of new home permits accelerated in the most recent month with builders pulling 842 permits in July (+13.3 percent). Increased permitting volumes suggest builders are experiencing incremental demand in their sales offices. While the median new home price continued to rise (+7.8 percent), the increase was more modest relative to the resale market that experienced an impressive 16.8 percent gain. The median resale price reached $233,627 in July, or $141 per square foot. Despite modest availability reported in the Multiple Listing Service (MLS), closing volumes have remained elevated (4,250 sales in July). A total of 5,776 units were available in July, which translated to effective inventory of 1.6 months. However, pricing dynamics play a significant role in measuring inventory levels. For buyers seeking more affordable product under $300,000, availability equates to 0.8 months of inventory; units priced above that threshold equate to 2.7 months of inventory. Overall, the mix of resale closings has essentially transitioned to a non-distressed environment and foreclosure volumes are at a near standstill. Economic fundamentals are expected to push the market toward increased stability through the balance of 2017. 

Closings are from the Las Vegas Valley only  and do not include Laughlin, Mesquite, Boulder City, Bunkerville, Moapa, Mt. Charleston, Indian Springs, or Pahrump. 
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