Single-family residence permits dropped from 27 in 2018 to 23 this year. Pulte Homes of Nevada, Sun City Mesquite, took out 11 permits in August while Nevada Residential Construction (NRC) took out 10 permits, and Jackson Contracting and AMB Construction taking out one permit each.

With all the talk of a real estate slowdown – and memories of 2008 as the most recent example in people’s minds – there’s a perception that the home prices are trending downward.  What’s really happening is that price appreciation is slowing… but prices are not depreciating.  KCM researched the 2019 pricing projections of 100 leading housing economists.

Are you nervous? Don’t be…
Ninety-four of those predict home prices will continue to appreciate in 2019.
Two of them predict no change in home prices in the coming year.
Four of them predict a slight depreciation in home prices between now and 2020.

This is NOT 2007 all over again. As I’ve been saying all along, we’re simply in a “normal market” now.

AMA (Ask Me Anything) helps keep my clients up-to-date on market conditions and provide a “safe space” for you to ask any real estate-related questions you might have.  Just AMA

Las Vegas-area (Mesquite is similar) home prices continue to hover around a familiar price point, according to a housing market report released today. July numbers from the Greater Las Vegas Association of Realtors showed the median price for an existing single-family house at $303,000, a slight dip from the previous month. For July 2018, the median price was $290,000, according to the report.  Janet Carpenter, president of the GLVAR, said in a statement that the July numbers continue to show the market is steady.  “We’re running out of synonyms for stable,” Carpenter said. “Local home prices are appreciating but at a more gradual rate than they have been in many years. The local housing market hasn’t been this stable in nearly 20 years.”  Before slowing earlier this year, Las Vegas Valley existing house prices had generally been rising since early 2012.  In March, the median price for an existing house topped the $300,000 mark, an increase of just over 1% from February. The median price has been hovering around $300,000 since last fall.  The all-time high median price for existing houses in Southern Nevada was $315,000, a figure reached during the summer of 2006.  The median price for local condominiums and townhouses sold in July was $175,000, up more than a 5% from the same month in 2018.  Tom Blanchard, who will serve as president of the GLVAR next year, said a stable market is a good thing.  “I think the Las Vegas market is answering everybody’s prayers by taking a breather,” Blanchard said. “This is allowing working class Las Vegans to let their paychecks catch up and purchase a home.”  At the end of last month, the association reported that just over 7,800 houses in the Las Vegas Valley were on the market without an offer, a 63% increase from July 2018.  For condos and townhouses, 1,864 units were for sale with no offers at the end of last month, up 112% from July 2018.  

Fannie Mae just released the July edition of their Home Purchase Sentiment Index (HPSI). The HPSI takes information regarding consumers’ confidence in the real estate market from Fannie Mae’s National Housing Survey and condenses it into a single number. Therefore, the HPSI reflects consumers’ current views and forward-looking expectations of housing market conditions.

Great News! The index reached its highest level since Fannie Mae began their survey. Breaking it down, the report revealed:

• The share of Americans who say it is a good time to buy a home increased from the same time last year.
• The share of those who say it is a good time to sell a home increased from the same time last year.
• The share of Americans who say they are not concerned about losing their job over the next 12 months increased dramatically (16 percentage points) from the same time last year.
• The share of Americans who say mortgage rates will go down over the next 12 months increased dramatically (24 percentage points) from the same time last year.

The day after the index was released, Freddie Mac also announced the 30-year fixed-rate mortgage rate fell to its lowest level in three years.

Doug Duncan, Senior Vice President and Chief Economist at Fannie Mae explained the uptick in the index:

“Consumer job confidence and favorable mortgage rate expectations lifted the HPSI to a new survey high in July, despite ongoing housing supply and affordability challenges. Consumers appear to have shaken off a winter slump in sentiment amid strong income gains. Therefore, sentiment is positioned to take advantage of any supply that comes to market, particularly in the affordable category.”

Bottom Line

Consumers are feeling good about the real estate market. Since Americans are not worried about their jobs, see mortgage rates near an all-time low, and believe it is a good time to buy, the housing market will remain strong for the rest of the year.

The city issued 34 permits for single family residences in 2019 vs 14 permits in 2018. Pulte Homes of Nevada (Sun City) took out 11 of those permits. Not far behind was Nevada Residential Construction (Boulder Heights-The Reserve-Hilltop Town homes), which received 10 permits for new homes.  Further proof that the Real Estate Industry is in good shape!

The new housing segment in Mesquite bounced back in June with 44 permits issued for new homes.  Last year 34 permits were issued.  Sun City Mesquite took out a whopping 35 permits. The 87 year to date permits that Sun City has been issued is on track with the 86 permits issued last year at this time.  The Resale market has been strong also.  Call Goody for more detailed info.