Demand for homes continues to stay strong. This, coupled with low inventory is driving up the median sales price.
The lack of inventory is also bolstering new home sales. Many of Las Vegas’ master-planned communities have not only seen sales keep pace with 2019 but have even exceeded last year’s sales. The biggest increase in new homes has been seen in North Las Vegas due to its abundance of affordable homes.
Read or watch for the full August 2020 Las Vegas Real Estate Market Update. All data from LVR July 2020.
The median sales price of single-family homes was $330,000. This is up 1.5% from June 2020 and up a whopping 8.9% from the same time last year.
While this is an all-time high for the Las Vegas area, when taking into account for inflation we are still not past the peak in 2006. In June of 2006, home prices peaked at $315,000. Adjusted for inflation this would be $411,000 at today’s value.
Townhomes and condos have had a slower recovery but made a rebound this month. Median sales price was $196,000, up 4.7% from last month and up 12% from the same time last year.
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There were 3,325 single-family homes sold last month, a 34.9% increase from last month and a 5.3% increase from the same time last year. We are still seeing a rebound from the pent up demand of the Spring market.
700 condos and townhomes sold last month which is a huge increase of 48.9% from the previous month. However, these sales are still down 3.3% from the same time last year. As we noted in the past people who buy condos and townhomes may be more likely to have careers as gig workers, hospitality workers, etc. These jobs are most at risk right now, so it makes sense that sales are down.
The pool of available homes continues to shrink. There were 4,806 single family homes available for sale last month. This is down 5.4% from last month and down 38.4% from 2019. There were 1,581 condos and townhomes available for sale, which is down 2.2% from last month and down 15.2% from last year.
Overall, new listings were up from last month, but still down from the same time last year. The number of new listings is not keeping pace with demand and we are seeing inventory continue to shrink.
Once again, months of inventory dropped. There were 1.4 months of inventory for single family homes. Down 29.9% from last month and down 38.4% from the same time in 2019.
Condos and townhomes had 2.3 months of inventory. Down 34.3% from last month and down 12.3% from last year.
A “balanced market” sits at about 6 months of inventory. Anything less favors the seller while anything greater favors the buyer. Currently, both market segments are still favoring the seller. This means that sellers may receive multiple offers, they are less likely to pay closing costs, and less likely to negotiate on price (if priced correctly of course).
Again, a lack of inventory is having a huge impact on the Las Vegas market. Despite the pandemic, we are seeing a huge demand for homes. Low-interest rates mean buyers can stretch their budget farther and Californians are flocking here in droves.
Builders need to continue to construct homes at a rapid pace to keep up with this demand. Interestingly, the median home price for new home sales in Las Vegas has dipped. But this is not an indication of a downward market. Rather, home builders are putting out more affordable products such as condos and townhomes. This is why Valley Vista by DR Horton in the North of Las Vegas is doing so well. While the master-planned community didn’t rank on national lists last year, Valley Vista is now the #6 most popular master-planned community in all of the United States!
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All data is July 2020 numbers, supplied by the Las Vegas Realtors. Deemed reliable but not guaranteed.