Appraisal Articles 2019 Free Appraisal Articles for Appraisers and the Public
Here is an update on what I have found in the Las Vegas real property market as we near the end of the third quarter of 2020 based on research.
Here are a few statistical facts in September of 2020 on the Las Vegas market; the median sales price of single-family previously owned homes is up to $ 312,000 and it appears to be climbing higher. Fewer and fewer new listings are coming on to the market, we are at a 5-year low, and fewer homes of this type are for sale. The median days of market has fallen slightly to around 23. The median price per square foot is up to $ 170. So it appears that the market is doing well, but is it?
You have to ask yourself, “why is the delinquency rate increasing?” and “Why are so many people asking for mortgage forbearance?” What is going to happen to the market in a few months when tenants can no longer avoid having to make their rental payments?
The fact is that the SFR residential real property market in Las Vegas that is propped up by short a supply of available homes and low interest rates, and that market may look a lot different in a few months. I’m not saying that I think a crash is coming, I’m just saying that the market may change as the supply of single-family homes increases and / or the number of buyers decreases.
Some commercial market segments have dramatically slowed like Office and Retail. There are many new office building and retail building offerings now on the market with signs on them like restaurants. COVID has damaged these market segments and brokerage reports tout the large vacancy rate increases. Decreases in the rental rates will accelerate as we close out the year and these commercial market segments begin to adjust to their new reality.
The question on everyone’s mind is “how much of a decrease will there be to my office building or retail property?” and of course that is tied to your existing leases. Buildings that lose their tenant or tenants can suffer large losses. How many new restaurants are looking for large buildings even though COVID looks like it has already done its worst?
Thus far it appears that the Las Vegas commercial real estate market will likely end 2020 trying to adjust to the insanity brought about by COVID.
For more appraisal information contact Glenn J. Rigdon MA, MRICS, IFAS, ASA who is a Las Vegas / Henderson Nevada based broker and appraiser who can be contacted via email or via his business website known as Appraiser Las Vegas (http://www.appraiserlasvegas.com), or http://www.horizonvillageappraisal.com, or you can also click on “Contact Us” on the home page of this website or visit my public profile at LinkedIn at http://www.linkedin.com/pub/glenn-rigdon-ma-mrics-asa/1a/30b/879/
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