Several factors have been working to make the real estate market more competitive than it has ever been, pushing prices up on both resale homes and new construction homes, with new construction home price increases outpacing price increases on resale homes. We have also seen a huge drop in inventory and with more people looking to place their money in assets that will appreciate, this has consequently resulted in an increase in cash buyers in the market.
The market is extremely competitive for buyers right now and coupled with increasing lumber prices and other building supplies, new construction homes have become more difficult to secure resulting in many buyers turning back to the resale market.
Read or watch for the full April 2021 Las Vegas Real Estate Market Update. All data from LVR March 2021.
Median prices of single-family homes increased again from the previous month to $363,000. This is up 2.3% from last month – an increase that we usually see over 6 months or a year – and up 13.8% from the same time last year as extremely high demand continues to push home prices up.
Median sales prices of condos and townhomes saw a slight decrease to $194,000 . This is down 1.8% from last month and up 4.6% from the same time last year. We expect this to increase next month.
Extremely high demand and ever-shrinking inventory will continue to push median home prices up.
3,726 single-family homes sold last month. This was up 34.7% from the previous month and up a total of 35.1% from the previous year. An interesting data point to consider is pending sales, which gives us a sneak peek into what we can expect for next month. Pending sales for single-family homes are down 6.7% from the previous month, as we see the high number of single-family homes sold from last month has exhausted the inventory. This will likely result in upward price pressure and less sales in the following month.
Similarly, 998 condos and townhomes were sold last month. This was up 38.2% from the previous month and up 39.8% from the same time last year. With higher demand of single-family homes pushing median sales prices up and inventory to an all-time low, more buyers are beginning to turn to condos and townhomes. Pending sales for condos and townhomes are down 3% from the previous month.
While the demand exists for new homes, there are hardly any homes on the market for buyers and this will make the market even more competitive for the prospective home buyer in the following months!
As demand soars, inventory continues to shrink exponentially. There were just 1,772 single-family homes available for sale, up 5.7% from the previous month and down a whopping 68.8% from the same time last year. To put this into perspective, if you had 10 houses to choose from last year, you would only have 3 houses to choose from this year. While we have seen new listings increase with the usual spring inventory push, it is simply not enough to keep up with the high demand.
Along those same lines, there were 597 condos and townhomes available for sale. This was down 11.6% from last month and down 63.3% from last year.
Currently, the single-family resale market is down to only 0.5 months of inventory and condos and townhomes have also dropped even more from the previous month to 0.6 months. A balanced market that neither favors the buyer or the seller balances out at around 6 months of inventory. This huge dip in months of inventory means that market conditions heavily favor the seller, resulting in buyers resorting to various methods to make their offers more competitive – your real estate agent is extremely important and can help you leverage strategies to get your offer accepted.
If you’ve been thinking of selling, now is the time. Many listings are receiving multiple offers within hours…and buyers are often paying over ask and willing to pay a certain amount above appraised value, with many fully waiving home appraisals as well.
Interest rates remain at historical lows. If you’re in the market to buy, you have to move fast and be very competitive with your offers. Your real estate agent and who you choose as your lender (we recommend using a local lender) is absolutely key to securing your home.
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All data is March 2021 numbers, supplied by the Las Vegas Realtors. Deemed reliable but not guaranteed.