MESQUITE, NEVADA REAL ESTATE AVAILABLE TODAY
Today July 23, 2008 there are currently 314 active single family residential properties on the local multiple listing service "For Sale" in Mesquite, Nevada.
The break down is as follows: single family homes for sale, 174 with prices ranging from $147,000 to over $2,000,000.
Condo/Townhomes for sale, 140 with prices ranging from $53,900 to $425,000.
Competitive supply and demand data is a form of market trend data, one that is more closely tied to a particular or local market, therefore it is neighborhood specific. It is a fundamental rule of appraisal that supply and demand affects value.
Inventory and competition are driving prices in 2008.
Representatives from Sun City Mesquite were my guests on "Talking Real Estate" RadioMesquite.com July 19, 2008 and said the average base price remains in mid $130's per square foot, and the Golf course is scheduled for completion late 2009.
The all time high was reached on February 20, 2008, Mesquite, Nevada MLS inventory had 417 residential properties "For Sale". Most homes falling off the active "for sale" list, reducing the active inventory are going out as failed listings. They either expired, cancelled, or were withdrawn. They did not sell and are still out there, and many are sitting vacant, many need to sell.
Single family new home building permits issued by the City of Mesquite, NV through June 2008 total 209, adding to the supply side pressure. Only 58 existing homes sold and closed during this same time period.
Prices continue to fall in the Mesquite Market, days on market continue to get longer, failed listings out number pending, five to one. Public filings of notice of defaults appear to be spiking, these will be tomorrows foreclosures, there were 56 properties in Mesquite on the last "Notice of Default" list I received. We are now dealing with the loss mitigation departments at nearly every bank, negotiating "Short Sales" in an effort to help sellers avoid foreclosure.
The average ASKING price for a single family home in Mesquite at the start of May was $412,901 or $196 per square foot, as listed in the local MLS. This number is over twice the national average sales price. Seven were asking above $300 per square foot! Only 2 have EVER sold above that price in the Mesquite Market!
The median Asking price for a single family home is closer to $330,000. The national median price currently stands around $200,700 and continues to fall.
May 15, 2007 at the meet the candidates night, past mayor Bill Nicholes said "there over 14,000 home sites out there approved and being developed", that is a 29 year supply based on actual building permits issued for single family and multi family homes in 2007. This does NOT include the Toquop Township, currently in the planning stage in Lincoln County; Toquop has a six and a half mile adjoining border with the city of Mesquite to the north. The plans at this point are to develop 40,000 housing units, and the only access at this time is through Mesquite. That is a total of 54,000 residential vacant lots coming online! This is great news for savvy shoppers planning to visit Mesquite,NV in the next few years.
We are now seeing whole subdivisions of developed vacant lots being offered "For Sale" at large discounts. Many subdivisions are currently well into the foreclosure process. At the very least competition for the buyers is HEATING up. When you can buy a lot, with no time limit to build, no specific builder requirement and have a new home built by your builder, comparable to and competitively priced with Sun City, you will know the market has found balance.
At current prices and sales numbers it could take 29 years to build out the excess inventory currently available. Priced to compete, demand could snowbball here in Mesquite!
The coming supply of lots, should allow the market to come to that balance point. This free market balance at work will be very good for Mesquite.
Here is a number to watch Total Pending. This includes ALL residential categories, everything pending in the local MLS system for the City of Mesquite, as it goes up or down it is a sure indicator of real market activity. As of July 23, 2008 total pending is at 28 units. Some of these deals have been pending for months and most are contingent on obtaining financing, so for various reasons they may or may not close. 15 are single family homes.
Learn To Buy Right!
Come in and take a free "Mesquite Market Smart Buyer" Seminar, learn why it is in your best interest to have your own agent when you buy. Learn why sellers are more than happy to pay fees for you. Learn how to buy pre-foreclosure "Short Sale Properties". In this market you can easily go out and pay more than you should. Opportunities are being created right now, market knowledge is the key to unluck them. Representation is critical and you need to understand it. The agent sitting in the model home, the open house, or answers the phone when you call on a sign, most likely WORKS FOR and REPRESENTS the seller.
Spend an hour, it just might save you a pile of cash! The Smart Buyer seminars are open to anyone, free, no obligation, and on Saturday mornings. To reserve your seat call Chris at Mesquite GMAC 435-862-5951 .
Many builders are now offering huge incentives to agents and buyers. Free swimming pools, new cars, landscaping packages, appliance packages, plasma TVs, thousands to spend in upgrade centers, you name it. Even an $80,000 cash rebate, to spend on anything, now that is a motivated seller! Today every builder will negotiate.
Why do you suppose they don't just offer YOU a better price?
These incentives and give aways do lower the builder's profit margins, but because they are included in the price, they tend to hold prices up.
Future values will be based on recent comparable sales prices. Lower prices might also cause problems with those folks who currently have contracts to build, but are yet to close.
Builders are experiencing extremely high contract cancellation rates across the country. Dropping prices would likely lead to even more of those people backing out.
Not to mention those people who just recently closed, how they might react to the builder offering a lower price than they just paid for the same house.
A cautionary word, builders taking large deposits prior to specing the home, make sure you can get out with your deposit. If you don't like the options or more likely the option prices, or final price per square foot, you must have option in writing to cancel with a full refund. They may say they can't do that, but they can and do if you insist.
Sitting with a Vacant New Home For Sale? Join the Crowd!
At the begining of May 2008, 31 of the active listings "for sale" were listed as new or under construction, many are complete and sitting vacant. Average asking price, $203 per foot! The overhang of inventory is in direct competition with those builders selling pre-sale homes to be built.
This asking price per square foot was over 25% above the average new home price of the closed homes at Sun City during 2007. The smaller local builders apparently still don't get it!! Worse some consumers and their agents are still writing contracts at these prices. This is exactly why buyer agency and representation are so important today in this market enviroment. It is worth your time to learn to be a Smart Buyer!
There are premium golf front and view lots with highly upgraded homes built on them in certain neighborhoods that warrant these higher prices but many of the sales over $200 per square foot look like financial mistakes. At least if they need to get out any time in the near future.
Most buyers seem to recognize the value at Sun City since the average base price is currrently around $136 per foot including a standard lot. Sun City has put a great deal of pressure on prices for the rest of the Mesquite Market.
2006 new home average selling price per square foot was $194. In 2007 new home actual price has dropped to $174 per square foot.
Year to date, 2008 the price has dropped to $157 per square foot or an average price of $267,419 for existing homes at the end of March.
On April 22, 2007, the average ASKING price for a single family home in Mesquite,NV hit an ALL time new high at $211 per square foot!
In some areas this lower price trend appears to be accelerating, and "Buyer Beware" is real.
Speculators or house flippers are finding homes are like pancakes, if they don't flip them they burn!
Market History
Is Mesquite Affordable?
With the average single family home last quarter (2006) selling for just under $360,000, what does it take to buy a home in Mesquite? If you put 10% down ($36,000) and finance $ 324,000 at the current rate of 6.5% on a fixed rate for thirty years, (PITI plus mortgage insurance)your house payment will run about $2400 per month.
Using standard 28% and 36% debt to income ratio numbers, your GROSS income will need to be around $100,000 a year, or about fifty dollars an hour. So I made a call to the local Chamber of Commerce to inquire about fifty dollar an hour jobs in Mesquite, they laughed!
Lack of affordable or work force housing is an issue for employers. If ignored it likely will depress local economic and population growth and increase vacancy rates.
The proposed coal burning plant near Mesquite may affect prices and demand!
Is Price Per Square Foot a Fair Way to Compare Properties?
It is if we are comparing apples to apples, let's break it down for real estate. Since we can't see inside the walls lets assume the following; slab, rough-in plumbing, wiring, framing, exterior wall finish, heat and air unit(seer 13 minimum today), insulation, roofing are all about the same. So here are some of the possible variables, windows, doors, floor coverings, plumbing fixtures including sinks, tubs, and showers, lighting fixtures, counters, cabinets, interior wall finishes, and appliances. In addition a home may have a water treatment system, security system, wiring for entertainment system, etc.
All these features can be important and some buyers do have strong preferences.
Condition, dirt, and clutter are the three biggest culprits when it comes to poor showing. Even a dated, slightly worn home that is clean as a whistle and staged properly may show better than a newer home built with more expensive matertials. So back to the basics, clean it up and clear it out, fix any broken items, try to give it a sense of pride of ownership and it will show it.
Of course location, views, and land value also play a huge role. So what's it all worth? It can be a bit of a maze!
The fact is it is worth what a willing and able buyer will pay for it. You may love your hot tub and pool, but if the buyers don't see the value then they really don't mean much.
Here is the bottom line, if you are buying and you're willing to pay more for the upgrades, great enjoy them. If you are selling and you want more for your upgrades, then you are looking for the buyer who appreciates them as much as you do, and of course not every buyer will, so you have narrowed your selling market, on the other hand those upgrades may be just what sells the home to the new buyer. Remember though if you asking more for the upgrades be prepared to wait for just the right buyer to come along, in a competitive market like we have today it could be a long wait.
Average price per square foot is just that an average in your neighborhood and all things being relatively similar, it is without question the best way to compare properties.
Just remember that faux finish you love and spent thousands on, may be the first thing the new buyer paints over.
