Our subscribers have recently received Volume 344 of the Las Vegas Housing Market Letter in their inboxes. This month HBR President Dennis Smith discusses the many forms of good economic news coming in currently, not the least of which is the potential local benefits of the new NHL hockey team beginning play at T-Mobile Area in 2017, as well as the lingering possibility of the Oakland Raiders moving to town. As noted by the Las Vegas Review-Journal, Las Vegas was the most populous metro area in the country without a team in one of the major sports.
In looking at the new home market, the good news is also evident, although with the ever present "but"s and worries that have become the new normal in the industry. When looking at the permit and closing numbers for new homes, we are seeing a similar trend as we saw in 2015, except the activity has increased roughly 10-15%. While that's great, we point out that if the 2015 trend continues, that activity will start to slow for the rest of the year. We shall see.
In discussing prices, we point out that new and resale median prices are following a very similar trend over the past 18 months, with the new home segment bouncing around a bit more than that of resales. Dennis also touches on the infamous "pricing gap" that has been a constant topic of discussion for some years now. Since its peak in January of 2014, the median price difference between new and resales has closed by nearly $30,000.
Wrapping up, Dennis discusses mortgage issues the industry is facing on a national level and mentions some of the many intriguing land transactions that have happened recently.
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