That is the question of the day and at this point the short answer is that the market’s holding up quite well under the circumstances. Surprisingly, our median sales price reached record highs for the past two consecutive months. On the other hand, these are turbulent times and there are some underlying trends to keep an eye on.
· We are seeing signs of downward pressure in this month’s RSAR Report, particularly relating to the active/available inventory as well as the total sold numbers. While homes under $500,000 are still going into escrow quite quickly the overall month’s supply of inventory is on the rise. This is mostly attributed to the higher end of the market. For example, home sales over $1,000,000 are down 30% in the month of April, year-over-year.
· Rental delinquencies are up significantly, mostly among apartment dwellers. There aren’t any statistics to share yet, but it’s likely that the most vulnerable will be the first to go into eviction. Currently, there is a moratorium on eviction proceedings in Nevada while no protection is being offered to landlords making payments on their investment(s). Eviction will be inevitable for some eventually.
· Unemployment is a big overriding factor and If you’ve been considering the sale of your rental property, now might be a good time to get that done. While the demand for affordable homes is quite strong today it seems almost inevitable that we’ll see an eventual drop in demand and possibly pricing should unemployment remain over 10% for a significant period of time.
Still, there are opportunities in this market and as a company we are continually discovering new ways to safely assist our clients in the sale and purchase and leasing of real estate. We will remain your source for real estate information and services through thick and thin.