Thursday, October 4, 2018

WESTLEIGH PRICE REPORT OCT 18

WESTLEIGH PRICE REPORT OCT 18

WESTLEIGH PRICE REPORT

10/4/18



There were 24 closed sales over the past 365 days in the Westleigh Neighborhood, with the following metrics:

PURCHASE PRICE:
AVERAGE: $250,237
MINIMUM: $203,500
MAXIMUM: $325,500
MEDIAN: $239,950

PRICE PER SQUARE FOOT:
AVERAGE: $183.72
MINIMUM: $114.63
MAXIMUM: $246.53
MEDIAN: $193.07

12 MONTH ABSORPTION RATE: 4.06 - Seller's Market

I'll post an explanation of Absorption Rate later. But the main point to understand is that absorption tells us how much inventory we have if the rate of buying continues & no new listings come to market. Right now we have 4 months of inventory, which isn't much. So, it's a seller's market. A buyer's market would be 8 months or more of inventory. While a "balanced" market would be an absorption rate of between 5-7.

Looking at the 12-month price chart below, a couple features jump out to me.

First, despite the sense most people have that prices are aggressively moving higher, the purchase prices are actually relatively flat during this time period.

Second, you'll notice the highs are getting progressively lower. Watch the 1st-tier listings, which peaked at $325K in Jan 2018. This peak was followed in Jun, Aug & Sep with sale prices of $315K, $301K & $294k, respectively. But you can follow the "2nd-tier" listings as their high points track down as well.

Why is this important? If it continues, it represents a down-trend.

An additional factor to keep in mind if you're following the market:

The FOMC is in a tightening phase. Rates were raised another 25 basis points just a few days ago.

It is debatable if the Fed will continue tightening, because if rates go much higher the United States will struggle to maintain its own debt. (Watch the financial press - as I write this, a bond sell off is picking up momentum around the world & this will cascade into the US markets in various ways).

It is also debatable whether higher interest rates will deter home buying activity, especially among the Millennial Generation, which is the primary driving force behind the current inventory shortage. I've heard many real estate "experts" spout knowledgeable about how Millennials are not home buyers. But all evidence to the contrary. And higher rates never detered previous generations from buying houses.


CURRENT WESTLEIGH LISTINGS:

1266 BARNARD Drive
Price Reduced to $284,888

1237 DARMAK Drive
Price Reduced to $363,000





































1244 BARNARD Drive
Price Reduced to $410,000





































1313 BARNARD Drive
Currently Under Contract





































1110 BARNARD Drive
Currently Under Contract



































Not pictured:

1213 Barnard $380,000
3312 Westleigh $234,995 Under Contract



RECENT WESTLEIGH SALES (last 60 days):

1224 MELVILLE Drive
$213,000










































1349 DARMAK Drive
$249,900







































Not pictured:

1206 Melville $203,500
1324 Melville $230,000
1319 Barnard $260,000
1254 Barnard $293,888
1225 Douglas $301,000



Want to learn more? Email me anytime at joe@joeneilson.com, or text/call me at 702-412-7655.

PLUS: Whenever you're ready, here's a couple ways I can help:

1. Join my Daily Tour of Homes
Don't let your dream house get away. I tour homes almost every day of the week. 
Contact me at www.DailyHomeTours.com to schedule your private tour.

2. Get Pre-Approved for Financing
The Loan Officer you choose can be critical. Re-Financing, Interest Rates, Lender Fees, Jumbo Loans, Etc. I work with lots of lenders. Take advantage of my network. Email me at
joe@joeneilson.com and I'll introduce you to some trusted local Loan Officers.

3. Find out the Value of your Current Home
Even if you aren't quite ready to move to a new house, it's simple and easy to follow the market in your neighborhood. 
Contact me at www.NeighborhoodPriceReport.com to get a free report on the market in your area.


Information is deemed to be reliable, but not guaranteed.

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