Local home sales get hot during summer
Q: What’s the best time of year to buy or sell a home in Las Vegas?
— Maria P., Las Vegas
A: The answer to your question depends on whether you’re a buyer or seller. The answer can also vary depending on what type of property you’re talking about.
If you talk to people who sell high-rise condos along the Las Vegas Strip, they’ll tell you that December and January can be strong sales months for them.
But in general, local homes sales usually dip during the winter, pick up in the spring and surge through the summer before starting to fall in the fall.
Our Greater Las Vegas Association of Realtors statistics show local home sales tend to slow down around the holidays, when people are more likely to travel, spend time with friends and family and shop for things other than homes.
Likewise, local homebuilders report fewer people visiting their sales offices in December.
As a result, January is usually our slowest sales month.
This was the case in January when GLVAR statistics showed the total number of existing local homes, condominiums and townhomes sold in this traditionally slow month was 2,821.
That was down from 3,624 total sales in December and down substantially from 4,388 total sales in March of 2012 — which happened to be the best month for existing local home sales last year.
In 2011, GLVAR statistics showed that local home sales peaked in August, which is fairly typical.
Even with temperatures surpassing 100 degrees on most summer days here in Southern Nevada, we usually sell the most homes during our hottest months.
As in other parts of the country, home sales spike in the summer when the days are longer, children are out of school and families are more willing to move.
So if you’re looking to sell a home, you’ll probably find the most interested buyers during the summer.
And if you’re interested in buying a home, you can usually find the most motivated sellers and some of the best bargains during the winter.
These seasonal trends are fairly common nationwide, though our warm climate means our winter sales slump is not as severe as it can be in colder climates.
In most states, including here in Nevada, studies show that house hunters are most actively searching for homes in March and April.
By September, search activity starts to slow down in most markets before bottoming out in December and January.
I expect these seasonal trends to continue here this year, though they could be skewed somewhat by the unusual housing market conditions we’re currently experiencing.
We continue to have a very tight local housing supply, which is pushing up home prices and hopefully encouraging more homeowners to sell.
I think now is a good time to list your property for sale. In addition to spring being a good season in general, most sellers today are receiving multiple offers from potential buyers.
While the best bargains may typically be found during the winter months, our current lack of inventory is causing home prices to rise, meaning today’s price may turn out to be the best bargain.
Finally, since the federal government has extended the Mortgage Forgiveness Debt Relief Act through Dec. 31, homeowners who owe more on their mortgage than their home is worth would be wise to short-sell their home this year before that act expires, causing them to face a potentially large tax burden starting in 2014.
Housing experts like Lawrence Yun, chief economist for the National Association of Realtors, are predicting a seasonal rise in inventory this spring.
But, as Yun pointed out last month, this expected increase in homes available for sale may not be enough to meet the strong demand we’re seeing nationwide, especially here in Southern Nevada.
I hope that helps. Keep sending your questions to me at ask@glvar.org.
Dave Tina is the 2013 president of the Greater Las Vegas Association of Realtors and has worked in the real estate industry for more than 35 years. GLVAR has nearly 11,000 members. E-mail questions to ask@glvar.org. For more information, visit www.lasvegasrealtor.com.
