Last month’s closings were down significantly. However, the median sales price increased. What’s going on here?
Read or watch for the full June 2020 Las Vegas Real Estate Market Update.
The median sales price of single-family homes increased to $315,000. This is up 1.6% from the previous month and up 5% from the same time last year. Median prices are will below an all-time high of $319,000 this past March.
Condos and townhomes also saw an increase in median sales price to $185,000. This is up 2.6% from last month and up 3.1% from last year.
How can the price go up during a pandemic? Keep reading 🙂
Units sold are down significantly. These buyers would have been out looking in April, when nonessential businesses were shut. Many people were either out of work or in self-quarantine. The people moving during this time NEEDED to move.
There were 1,703 single family homes sold, which is down 13.6% from the previous month and down a whopping 48.1% from the same time last year.
Similarly, there were 372 condos and townhomes sold which is down 15.5% from last month and down 51.3% from 2019.
Across the board, inventory is down. While new listings saw a 28% from last month, the market is still WAY behind the normal number of new listings for this part of the year (down 30%).
While this low inventory makes things difficult for buyers, it is the primary driving force behind the price stability. Demand has quite obviously dropped, but supply has dropped to meet it…thus aside from a small dip last month, prices have remained stable.
There are 5,799 single family homes available for sale, down 4% from last month and down 26.2% from last year. There were 1,768 condos available, down .2% from last month and down 5.8% from 2019.
There are 6,043 SFR available, up 6.3% from last month and down 18.7% from last year. There were 1,772 condos and townhomes available, up 8.8% from last month and down 3% from last year.
Lastly, let’s look at months of inventory. There are 3.4 months of availability for single-family homes (up 11.1% from last month and up 42.2% from last year). Similarly, there are 4.8 months of availability for condos and townhomes, up 18% from last month and up 96.3% from last year.
Months of availability reflect how long the current inventory would last if demand remains the same and no new homes came on the market. Generally, 6 months is considered a “balanced market,” while anything less is a seller’s market and anything over 6 months is a buyer’s market. Despite the craziness, Las Vegas overall is still considered a seller’s market which means sellers tend to have “the upper hand.”
Condos and townhomes are getting closer to being a buyer’s market. In some parts of town, these units are most certainly already in a buyer’s market. This leads us to another point. You know the saying, “All Real Estate is Local?” well real estate is in fact HYPERLOCAL. Currently, neighborhoods in Las Vegas and Henderson have months of Inventory ranging from 2 to 25! If you’re thinking of selling, we’d love to pull up the specifics for your community. Click Here to Schedule Your Free Consultation.
In the short term, we’re seeing a huge increase in buyer demand. We expect the next few months to be very strong. What happens towards the end of the year will greatly depend on if and how a second wave of coronavirus hits us.
One other thing to note…distressed sales are at an all-time low. This makes sense, due to mortgage forbearance and foreclosure moratorium that has been extended to the end of June by Governor Steve Sisolak. We won’t begin to see the fallout from this until the end of the year.
Thinking of buying, selling, or just have questions? Click SCHEDULE YOUR FREE CONSULTATION in the upper right-hand corner of your screen.
All data is May 2020 numbers, supplied by the Las Vegas Realtors. Deemed reliable but not guaranteed.