Las Vegas Real Estate Buy or Sell Meter
There are great times to buy in Las Vegas and great times to sell in Las Vegas. Some times we don't have a choice so NOW is the time. However, if we have time to make a great decision we can follow the market and get a great feel for what is happening.
| Las Vegas Buyer's or Seller's Market |
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A BUYER'S MARKET is one where sellers compete to sell their home. They must offer incentives and often times take less money for their home than in other times. They may need to pay for a buyer's closing costs and other items that are commonly negotiated.
A SELLER'S MARKET is one where the buyer competes for a seller's home. Prices are often bid up and buyer's must pay for their own costs because another buyer may out do them in terms or price.
A NEUTRAL MARKET is one where buyers and sellers must negotiate over every item. Another buyer may exist for the home with better terms or it may not.
The graph and numbers represent the strength of buyers and sellers within the Las Vegas Market based on homes for sale by a Realtor®(s) (a real estate agent associated with The Greater Las Vegas Association of Realtors (GLVAR). This is strictly an experimental indicator at this point because the numbers are not scientifically proven. Many factors go into the determining of the strength of the market. Most numbers are pulled from the Multiple Listing Service (MLS) provided by the GLVAR. The numbers are usually pulled monthly and no warranty or guarantee is provided by the GLVAR so these numbers are informational only. Please see the site disclaimer.
Las Vegas Buy or Sell Meter Explained
The Las Vegas market meter formula is fairly simple. Here is how it works:
The goal is to compare current listings to current average expected resale home buyers.
Las Vegas Review Journal explains,
“The Las Vegas Valley adds as many as 7,000 residents a month...About a third of the city's new residents will buy homes immediately...plus, existing residents who want to trade up their home equity or stop renting generate additional demand for properties..."
For our formula we will use 3,500 as the average number of home buyers and take the number of listings monthly by comparison.
The final formula is
(current listings/3,500)
This gives us an index where 100% or 1 is a perfect 1 to 1 ratio of homes (products) to buyers. The margin up or down tells how much of a buyer's or seller's market we are looking at.
I typically update this graph 4 to 7 days after the end of the month because properties sold at the end of the month are often not completed in the MLS system for a few days.
A historical view of the Las Vegas market is also very valuable. Notice the cycles that form over periods of time.
| Historical Las Vegas Buyer's or Seller's Market |
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