Sunday, May 15, 2005

Las Vegas Sellers Reduce Price

The Las Vegas Homes site reveals that 736 houses for sale have been reduced in price in the last 7 days. If this site is correct, there are 17000 homes for sale. That comes out to over 4% of the listings that have lower prices in the last week.

7 Comments:

At 4:18 PM, Anonymous Anonymous said...

I don't think that is unreasonable. Let's say the number is 5%, to keep it simple. That would mean that for the last property to reduce its price, it would take 100/5 = 20 weeks or 5 months.

Unless you assume an average time on the market noticeably greater than 60 days, then 4% is an OK figure -- it is just 4 homes out of 100. Next week it will be a different 4 homes. What might trip you up is if you assume the same 4 homes keep reducing by 4% in successive weeks.
Chip

 
At 4:40 PM, Anonymous Anonymous said...

Did a little more research. The top- 5-priced homes were reduced from 4.2% to 5.8%. These are multi-million dollar homes and the initial prices could well have been fishing. Went to page 8 and the reductions dropped to 2+%.

Reminds me of people who want to sell something for "a fraction of its cost." 99/100ths is a fraction. I think observations of reductions need to take into account the severity and suddenness of the decreases.

Perhaps the shock is just that there are any price decreases at all in Vegas. That would have to be viewed in context with historical sales in that area. People in many seller's markets price their homes too high, then retreat if they don't get an offer very quickly. When Realtors are particularly hungry, they are tempted to "buy" a listing by telling the seller they should ask a price that, ultimately, will not be realized. This may be confusing to people in many areas of California or other areas that have gotten into the habit of under-pricing to create a buying fever.
It will be interesting to see if there are further articles documenting a real turn in the L.V. market. Chip

 
At 8:07 PM, Blogger goleta said...

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At 8:11 PM, Blogger goleta said...

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At 8:15 PM, Blogger goleta said...

If you click on states and then cities on
realtytimes.com, you'll find some major cities of the following states are now considered buyer's markets by the local realtors:

Texas, Colorado, Nevada, Georgia, Illinois, Indiana, Kentucky, Michigan, Minnesota, Missouri, North Carolina, North Dakota, Ohio, Tennessee, and Kansas. Some cities are expected to see the prices falling.

 
At 5:32 AM, Anonymous Anonymous said...

Goleta -- good tip, though I'm a little wary when the judges are all in the real estate industry. On the one hand, they should be the experts. On the other, many of them will have a decided interest in being cheerleaders for their market.

 
At 8:15 PM, Anonymous Anonymous said...

From 770 to 10. Hopefully the owner of the website is not a Realtor. If he/she were, I cannot believe their original listing of 770 homes would not be construed as fraud.

 

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