Appraisal Articles 2019 Free Appraisal Articles for Appraisers and the Public
As I have mentioned in many articles, appraisers generally keep close tabs on the markets and the movement of the single-family residential market is important. This review looks at properties located in Clark County Nevada. The following aggregate market statistics are provided via the GLVAR database and appear to be consistent with other data sources. New listings of previously owned single-family residential (SFR) homes are reported in November 2020 to be down and now near a 10-year low point, and the number of home sales is also heading for an all-time low.
As a real property appraiser I have tracked over the past several years Clark County (and Nye County) Nevada vacant land sales. The following graphic displays my best available historical and current data on the Southwest Las Vegas vacant land market. I have displayed sales in 4 zoning categories, but I also keep the data on other zoning categories when there are sales available. It is obvious from the sales data that vacant land sales prices in the Southwest continued to move up in each zoning category as displayed in the following graph:
In keeping with recent market recording reports on million dollar plus commercial real properties it appeared that monthly sales increased in all categories except the Apartment category in September, 2020. September saw increased recordings for Industrial, Retail, Office and Vacant Land. Office / medical office sales increased in September however they are only about half of the monthly number recorded in January of 2020 while Industrial and Retail sales appeared to be near pre-COVID levels.
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. Residential Market: 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?
If you have been following my commercial sales statistics on Clark County, Nevada, that includes Las Vegas and Henderson, you already understand that the number of $ 1 million and up closings, including vacant land sales, has dropped off by about 40%. That is a huge decrease in the number of sales, and as of today July 11th it doesn’t appear that things are getting better. The heaviest hit segment of the market is office buildings. There were no office building sales in April, May and there likely will be few offices sold in June or July. Let’s face it, people are not excited about returning to the office and employees forced to return who then become infected by COVID will not be an easy group to console.
Pahrump single-family residential (SFR) home sales volume, has remained strong through May but may suffer a decrease in June of 2020 based on a review of Nye County statistics. Nye County average sales price has however increased in the June projection. Also reviewed was the GLVAR sales data which included both standard SFR homes and manufactured homes. The GLVAR data indicated a strong increase in Pahrump sales through June of 2020 and a steady increase in prices between February 2020 and June 2020. The COVID pandemic appears not to have had a significant impact on the Pahrump SFR market with the exception being that the non-manufacture home sales volume appears to be down.
During May of 2020 (and June 2020 based on my perception of the overall market), relatively few commercial sales have been transacted in Clark County, Nevada in the recent past. The following table was extracted from sales data and it reveals that sales volume in May was still substantially impaired by the pandemic and the Office market appears to be the hardest hit. Thus, we remain in a "suspended" market and no one knows how long the commercial market will remain in this "state" without there being some negative impact. While the number of residential homes has fallen the demand for the ones available for sale has increased and thus sales prices have remained relatively high. While some market strength has returned we have not returned to what could be called a normal market for residential homes.
Water rights in Nevada “have the standing of both real and personal property” since a water right or fractional water right interest can be conveyed after it has been specifically excluded from a source property via a conveyance deed. That means that a water right must be specifically excluded via a deed of conveyance from a real property or it will run by default with the land it is associated with.
POSITIVE TRENDS SFR sales prices in Las Vegas per continued to increase through mid-May, 2020 per Realtor data and today the median price is near $ 310,000 or $ 168 per square foot (SF) of gross building area (GBA). When you exclude new homes and only consider previously owned homes the median is $ 305,000. This trend is great news if you are an owner, but not so great news if you are a buyer looking to acquire a home in the Las Vegas area.
Analyzing market value starts for an appraisal report begins with an assumption that there is a market, that there are buyers and sellers. While we are slowly starting to move out of a dark period when few of us could even prompt a potential buyer to look at a real property, we still have not reached a point where there are a sufficient number of buyers and sellers to call what is going on a market for some property types. Apartment closings dropped to zero in April 2020 as did office closings. Vacant land sales volume, while way down from 2019, has continued through the COVID-19 pandemic although many fewer properties are being sold.