Real estate property development and investment opportunities in Palm Beach and Las Vegas from David today: Economic Uncertainty and Forecast – Forecasters speculate that the Federal Reserve may slash the overnight funds rate in the coming year as inflation cools. This move could potentially provide a boost to the real estate market. However, given the unpredictable macroeconomic climate, the actual trajectory of the economy in 2024 remains uncertain. In December, there were 1,518 single-family houses sold, marking a 5.8% increase from November but a 1% decrease from December 2022. The median sales price of previously owned single-family homes in December was $449,900, showing a $100 drop from the previous month but a 5.9% increase from the prior year. The year started at $425,000, reflecting a 5.9% year-over-year increase. Read even more information at David Frear.
Will the Housing Market Crash in Florida? Population growth, and particularly growth in the number of households, lead to a growth in housing demand. Real estate is subject to the law of supply and demand: when there are more purchasers than available homes, prices rise. Since the 1940s, Florida’s population has increased year after year, often outperforming the national average. However, like the rest of the United States, growth plummeted to historic lows during the initial years of the pandemic until rebounding last year. Florida is now America’s fastest-growing state. According to recent census data, the Sunshine State added over 400,000 additional people between July 2021 to July 2022. It was a growth of 1.9%, bringing the total population to 22,244,823. That makes it faster-growing than Texas, which has the second-largest population in the United States, trailing only California.
A Las Vegas commercial property was recently acquired by a Los Angeles-based real estate investment company that plans on repositioning it and adding value. BH Properties acquired the Addison Complex facility for a fee of $2.8 million, from seller VanMeetren Family Limited Partnership. BH Properties worked with David Frear, Senior Vice President of Colliers International during the transaction, while the VanMeetren Family Limited Partnership was represented by Charlie Mack, a president and broker with Mack Realty.
VanMeetren Family LP sold the multi-tenant Addison Complex industrial building at 4680 W. Russell Rd. in Las Vegas, NV to BH Properties for $2.8 million, or about $66 per square foot. Delivered in 1984, the 42,471-square-foot building sits on 2.7 acres in the SW Las Vegas Industrial submarket of Clark County and features ten drive-ins, building signage and a fenced lot. The buyer plans to significantly upgrade the building and rearrange the property to just two tenant spaces. David Frear of Colliers International represented the buyer. Charles Mack of Mack Realty represented the seller.
The statewide median sales price for single-family existing homes in November reached $413,000, representing a 3.3% increase from the previous year. Condo-townhouse units also experienced a surge in median price, reaching $330,000, reflecting a remarkable 7.5% increase year-over-year. Inventory levels in the state have seen substantial growth, with single-family existing homes having a 3.7-months’ supply, up by 32.1% year-over-year. Condo-townhouse units reported a 5-months’ supply, exhibiting a substantial 85.2% increase compared to November 2022.
The Las Vegas real estate market has been on a remarkable journey, but in 2023, we see some notable shifts: The Las Vegas housing market is showing signs of cooling down. Sales activity decreased in 2023, and there was a significant drop in new listings. The increased months of supply also indicate a more balanced market, suggesting a cooling trend compared to previous months. The reduction in home prices also presents opportunities for buyers looking for more affordable housing options. However, while prices may have eased slightly, finding a home in Las Vegas remains a challenge due to low inventory. This means that competition among buyers, especially for properties in desirable locations and price ranges, remains fierce.
There are some general trends that are affecting the entire state. For example, Florida’s population is growing rapidly, and this is putting a strain on the housing supply. Additionally, Florida is a popular destination for retirees and second-home buyers, which is also driving up demand for housing. On the other hand, there are some factors that could put downward pressure on the Florida housing market in the coming years. For example, rising interest rates are making it more expensive to borrow money to buy a home. Additionally, inflation is eroding the purchasing power of consumers, which could make it more difficult for some people to afford a home.
