Last month saw the shut down of many businesses due to coronavirus. While the Las Vegas housing market was definitely affected by coronavirus last month, keep in mind that these deals were negotiated pre-covid 19 (these are end of March numbers). Therefore, sales price saw no decline. We expect to see a truer telling of how the coronavirus affects housing next month.
Read or watch for the full April 2020 Las Vegas Real Estate Market Update.
Median home prices actually saw an increase in March. Again, keep in mind that the majority of these contracts were negotiated before businesses shut down. The median home price for single-family homes in the Las Vegas area was $319,000, up 0.9% from last month and up 6.3% from last year. Before the crash in 2008, the median sales price was $315,000.
Condos and townhomes saw even greater gains. Their median sales price was $185,000, up 6% from last month and up a whopping 11.4% from last year.
Sales remained surprisingly strong, and are a testament to how well the Las Vegas market was performing pre-coronavirus. There were 2,758 single family homes sold, up 11.6% from last month and up 5.2% from last year.
714 condos and townhomes sold, up 15.5% from last month and up 11.7% from last year.
Although this is an increase in sales from last year, we were set to be doing up to 25% more sales from last year, so an increase of 5-11% is a slow down from expectations. 2 weeks of this period saw non-essential businesses shuttered and many buyers had to post-pone closing or cancel all-together.
Overall, for the entire market, there were about 19% fewer sellers listing their homes.
There were 5,687 single family homes available last month, UP 11.3% from last month and down 18.2% from last year. Months of availability crept up to 2.1 (still a seller’s market). We expect this to continue to increase as Nevada remains on lockdown.
Available condos and townhomes followed a similar pattern. There were 1,628 units available– up 34.1% from last month and down 7% from last year. Months of availability also increased to 2.3.
6 months of availability is generally considered a “balanced market” that neither favors the buyer or the seller.
We are only just beginning to see the effects of COVID-19 on the Las Vegas housing market. Data for next month will provide much more clarity, but we expect to see inventory increase and sales decrease. How much pricing will be affected remains to be seen.
Mortgage interest rates remain extremely low- around 3.3% for a 30-year mortgage and even lower for a 15-year mortgage. In fact, for a while lenders were having to turn people who want to refinance away as they’re too backed up.
Check back for next month’s update to see what further effects the virus may have.
Although the market has slowed down, nice, well-priced, affordable homes are still seeing multiple offers. Sales on homes over $500,000 have slowed down significantly as many lenders paused their jumbo-loan programs.
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All data is March 2020 numbers, supplied by the Las Vegas Realtors. Deemed reliable but not guaranteed.