Real Estate Market Trends

Middle East Investment Rising in the U.S.

Middle East – land of oil & gas became a land of fortune for some. Global real estate has seen a significant increase of investment from Middle East and US is not an exception. Middle East investments keeps rising over the past few years as we have seen multiple reports from Reuters, Forbes, CBRE, and other trusted sources.

According to CBRE Group, Middle East investment in the global commercial real estate sector reached nearly $10 billion in the first half of 2016. In 2017 CBRE shared that North America is a preferred region for investors, especially San Francisco, Los Angeles, and New York.

It’s all around us and we don’t even notice it. Worldwide hospitality company Hakkasan Group with nightclubs, chain of Michelin star luxury restaurants is owned by Abu Dhabi Investment company; The Qatar Investment Authority (QIA), recently purchased in 2016 a 9.9% stake in the company that owns New York’s iconic Empire State Building for $622 million.

Popular food chains like Pizza Hut, KFC, TGI Fridays are exclusively in hands of Al Kharafi Group. They are also the largest shareholders of Krispy Kreme.

Las Vegas, Nevada

If we look back at the real estate market in September, we see that market is indeed stabilizing and home prices keep climbing up. That’s good news, as it shows that our economy is indeed improving. Las Vegas is still seeing shortage of housing, with a two-month supply. We truly see that we are in the sellers market that is not controlled by lenders and mortgage rates are highest they have been in the past two years.

Cash buyers are not playing a major role anymore in our housing market only 25.7 percent of all sales in September 2017 were cash purchases. Compared to February of 2013, the number was at its highest at 59.5 percent.

In different markets we see different Sale Price VS List Price Ratio. Please review below as that would give you idea about making a reasonable offer, so you could be more effective while making offers. Gone are the times when buyers were offering 20-50 percent less than listed price!

Greater Las Vegas Association of Realtors had published the following data:
Las Vegas home prices raised, median sale price was $265,000 in September 2017, up by 13.5% compared to September 2016. Condos & townhomes median price went up by 21.6% compared to September of 2016.

Total sales in Las Vegas in 2017 are much higher and looks like it’s the best year since 2017:


Single Family Homes – $901 million (September 2016 had 15.2% less sales)
Condos & Townhomes – $103 million (September 2016 had 34.4% less sales)

In September 2016 we have sold within 60 days


Single Family Homes – 76.1%
Condos & Townhomes – 77.3%

In September 2017 we have sold within 60 days


Single Family Homes – 82.9%
Condos & Townhomes – 87.6%

CALIFORNIA
Prices continue to grow in California as well, and San Francisco is leading with highest prices per square-foot.
Median Sold Price Sep-17 Aug-17 Sep-16
www.car.org/3550/pdf/econpdfs/SFH_Sales___Price_2017-09.pdf
$555,410 $565,330 $516,450 – Existing Single-Family Homes
$450,400 $446,760 $415,540 – CA Condo/Townhomes
$504,990 $499,970 $463,60 – Los Angeles Metropolitan Area
$852,230 $856,200 R $762,810 – S.F. Bay Area
Price Per Square Foot Sep-17 Aug-17 Sep-16
www.car.org/3550/pdf/econpdfs/SFH_$sqft___SL_Ratio_2017-09.pdf
101.5% 101.9% 100.0% – Existing Single-Family Homes
$374 $374 $348 – CA Condo/Townhomes
$288 $285 $274 – Los Angeles Metropolitan Area
$490 $489 $447 – S.F. Bay Area
Sales Price to List Price Ratio Sep-17 Aug-17 Sep-16
99.1% 99.5% 98.6% – – Existing Single-Family Homes
100.0% 100.0% 99.1% CA Condo/Townhomes
98.8% 99.0% 98.2% – Los Angeles Metropolitan Area
101.5% 101.9% 100.0% – S.F. Bay Area

Now let’s look at the luxury high-rise market of $75,000 and above
As always, High-Rises of interest include: Sales from September 1, 2017 – October 13, 2017
Mandarin Oriental Residence
8 Active listings – $2,744,000 average price/ 4 Under Contract – $759,250 average price/ 6 Sold – $1,588,333 average price
Veer Towers
32 Active listings – $982,081 AP/ 8 Under Contract – $584,597 AP/ 13 Sold – $412,814 AP
Panorama Towers
27 Active listings – $664,251 AP/ 2 Under Contract – $349,500 AP/ 9 Sold – $422,056 AP
Vdara
3 Active listings – $651,296 AP/ 2 Under Contract $484,944 AP
Allure Las Vegas
28 Active Listings – $269,116 average price/ 3 Under Contract – $266,967 average price/ 1 Sold – $365,000
Metropolis
4 Active listings – $442,725 AP/ 1 Sold – $420,000
Turnberry Place
64 Active listings – $1,282,349 AP/ 3 Under Contract – $505,929 AP/ 6 Sold – $541,667 AP
Turnberry Towers
22 Active listings – $531,984 AP/ 3 Under Contract – $486,300 AP/ 6 Sold – $346,500 AP
One Las Vegas
8 Active listings – $521,150 AP/ 1 Under Contract – $450,000/ 12 Sold – $356,483 AP
One Queensridge Place
12 Active listings – $3,275,407 AP/ 2 Under Contract – $2,425,000 AP/ 2 Sold – $935,000 AP
Condos & Townhomes – 87.6%

Hi-Rise Report

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