The real estate market is slowing down, as is typical for year-end, but even with the usual lull, the market remains very active this year. Single-family home sales prices have continued to increase going into December, while home inventory continues to decrease. In addition, as rising home prices push people out of the single-family market, condo and townhome sales continue to increase. As a result, we’re still generally looking at a market that heavily favors the seller.
Read or watch our video below for the full December 2021 Las Vegas Real Estate Market Update. This month we’ll be discussing monthly market changes, why it’s a good time to sell this winter, and rising 2022 interest rates. All data from LVR November 2021.
Even though the market has started to soften, the median single-family home price continues to increase, up slightly from last month to $420,000. Although we’re still seeing price increases, the major 5-6% swings we saw earlier this year are no longer happening. Overall, the market is slowing down and stabilizing as we head into the holiday season.
We’re seeing similar numbers in the condo and townhome market, as median sales prices increased by 1.7% from last month to $240,000. As with single-family homes, we’re still seeing major increases from this time last year, with condo and townhome prices up 20.2% from November 2020. We expect this increase to continue into next month as more people who’ve been pushed out of the single-family home market look to purchase condos and townhomes.
Although listings are down this month, the total number of single-family homes sold actually increased from last month – up 6.4% to 3,273. With new listings down about 20%, it’s unlikely we’ll see home sales continue at this rate, but now is certainly still a great time to sell your home! This time last year, demand was so high that home sales continued to increase throughout the winter as COVID restrictions and shutdowns ended and the economy began to rebound. This is relevant not just in Nevada, but in neighboring states as buyers continue to move to the area.
Looking at condos and townhomes, a total of 862 Las Vegas condos and townhomes were sold last month, paralleling the track of single-family homes with a 7.1% increase over last month. One major area where condos diverge from single-family homes is the 2020 to 2021 comparison. While single-family homes sold are up 7.8% from 2020, condos are up a more substantial 18.7% from November 2020! This is likely a result of the major price increases we’re seeing, essentially pushing many homebuyers out of the single-family home market and into the condo market.
Inventory has continued to decrease with only 2,805 single-family homes available for sale, down 14.7% from last month and down 25.3% from this time last year. As noted earlier, new listings for single-family homes are also down 20% this month for a total of 2,851. Still, compared to this time last year, we’re seeing a 3.1% increase in new listings. Even with this increase over last year, inventory continues to remain incredibly low at just 0.9 months of inventory and prime areas are still seeing multiple offers.
Along those same lines, there were just 495 condos and townhomes available for sale in November, down 15.1% from last month and down 61.6% from this time last year. New listings for condos and townhomes also decreased with just 715 new listings, down 17.2% from last month, but still up 6.4% from this time last year. Effective months of availability for condos and townhomes dropped to just 0.6 months, still heavily favoring the seller.
A balanced market that neither favors the buyer nor the seller balances out at around 6 months of inventory. We are still in a heavy seller’s market as inventory remains very low.
If you’ve been thinking of selling, now is a good time, even as we head into winter. With high prices and low inventory, many listings in prime areas – and the luxury market in particular – are receiving multiple offers and buyers are continuing to purchase homes.
For the buyers out there, rents in Las Vegas have increased 22% from last year, and we expect them to continue increasing into 2022. With interest rates low and buying power high, now can also be a good time to buy a home. As the pandemic recovery continues, the feds are also tapering off buying bonds and mortgage-backed securities. The indirect result of this will likely be increased interest rates in 2022. So, although it’s not always the case, winter this year could be a great time to buy or sell!
We recommend that you use this real estate market update as a guide since real estate is local to your area. This means that you may have a sellers’ market or a buyers’ market depending on the region or local area you are looking to buy/sell. There are benefits to selling your home as the real estate market winds down towards the end of the year and we highly recommend searching for a good realtor, which can make all the difference in selling your home.
All data is November 2021 numbers, supplied by the Las Vegas Realtors. Deemed reliable but not guaranteed.