Market inventory is currently at 6,400 single family homes and approximately 1,700 condo’s a decline of approximately 10% since November 2013. New home sales are also down to the 500 range per month from 700 in months prior. We’re seeing fairly stable prices with multiple offer still extremely common however in Summerlin, Green Valley area, Anthem, Seven Hills and Southern Highlands.
Traditional product once again dominates the real estate landscape. Of the 8,100 plus homes on the market, over 76% of them are from “traditional sellers.” And, trends show that this percentage may very well continue to grow in the future (based on review of total new listings added versus total new escrows added in the month. In the closed numbers, “traditional sales” also make up the bulk of sales in February. Just under 75% of the closed units were in this category too.
Some trends or “non-trends” to note-total inventory has remained pretty stable (right around 8,300) for the past three months; And, we have also stabilized at around 3.4 months of available inventory; REO closings have nearly doubled in the past three months (from 6.5% of the total closings to over 11%); Short sale closings have declined as a percentage of total closings every month during the past 12 months. There were only 346 short sale closings last month. And, they only comprise 14% of the closed inventory.
Regarding price segments, 75% of the closings last month were between $50,000 and $250,000. That is still the sweet spot in the market. And there were fewer than 4% of total closings priced over $500,000. While luxury prices have increased, velocity in that segment is still not increasing.
Last, cash sales dominate. While down from months past, cash sales still are 47% of the total sales. This has been as high as 65% at times last year.