Last month we saw a surge in median sales price. Demand is up greatly from previous months, but the residential resale market still lags 13.2% behind last year’s closings at this time.
Read or watch for the full July 2020 Las Vegas Real Estate Market Update. All data from LVR June 2020.
The median sales price of single-family homes was $325,000. This is up 3.2% from May 2020 and down 15.1% 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 saw slower growth. Median sales price was $187,250, up 1.2% from last month and up 5.3% from the same time last year.
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Demand increased greatly last month. There were 2,464 single-family homes sold. This is up 44.7% from last month but still down 15.1% from the same time last year.
Similarly, there were 470 condos and townhomes sold which is up 26.3% from last month and down 35% from 2019. Why haven’t condos and townhomes seen the same boost in sales as single-family homes? Quite frankly, the types of people who buy condos and townhomes are the ones most likely to be laid off or furloughed (gig workers, hospitality workers, etc). “Snowbirds” who often purchase condos are also less likely to be traveling back and forth during this time.
We were short on inventory last month…and we’re even shorter now. SFR inventory is down 12.4% from last month and down 35% from the same time last year. There were only 5,079 single family homes for sale. New listings increased a minuscule .4% from last month and decreased 22.9% from the same time last year to 3,244.
There were 1,616 condos and townhomes for sale. Down 8.6% from last month and down 16.6% from the same time last year. This sector saw 758 new listings last month, up 4.6% from last month but still down 24% from last year.
Not surprisingly, months of inventory decreased to 2.1 months for single-family homes. This is down 39.5% from last month and down 23.4% from the same time last year.
Condos and townhomes had 3.4 months of inventory. Down 27.7% from last month but up 28.3% 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).
Demand for Las Vegas housing is extremely high. A few factors are playing into this. There was a pent up demand from months of closure. Historically low interest rates are causing many buyers to act now. Renters are wanting more space and making the move into their first homes.
And finally, we are seeing a huge influx of buyers from out of state. Many people are now able to work remotely indefinitely, and Covid-19 has really made people think about what’s important to them. Las Vegas has so much to offer (and no state income tax), so its no surprise we’re seeing this huge influx.
If you’re planning on selling in the next 3 years, NOW is the time. We have a huge lack of inventory and are seeing multiple offers on many homes. We expect the market to cool slightly towards the end of the year and there is a great deal of uncertainty ahead.
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All data is June 2020 numbers, supplied by the Las Vegas Realtors. Deemed reliable but not guaranteed.