As more people are looking to secure homes and even secondary homes, we have seen an increase in inventory with the real estate market in the past month. Currently a record number of homes are still being sold despite a softening in the market. Prices of homes have continued to increase from the previous year and we discuss the best lending practices to help you leverage buying and selling a home in this competitive market.
We talk about all of these fluctuations in the market and invited David Yurovchak from Guild Mortgage to discuss the Las Vegas housing market from a lender’s perspective.
Read or watch for the full June 2021 Las Vegas Real Estate Market Update. All data from LVR May 2021.
High demand for homes still exists despite a slight softening in the market. Median prices of single-family homes increased again from the previous month to $385,000. This is up 2.7% from last month and up a record 22.2% from the same time last year. Note that these numbers for the previous year are slightly skewed due to the impact of COVID-19 during the previous year.
This same appreciation follows into the sales prices of condos and townhomes, with median sales prices of condos and townhomes increasing to $205,000 . This is up 1.3% from last month and up 10.8% from the same time last year.
There was another slowdown in units sold from the previous month to just 3,189 single-family homes sold. This was down 9.6% from the previous month and up a total of 87.3% from the previous year. This slight decrease month over month was a reflection of the pending sales from the previous month. Note that the large increase from the previous year is protracted due to the height of COVID impacting sales from the same time last year. Demand is still high for homes, but more people are putting their homes on the market, whereas they had not previously considered selling previously.
911 condos and townhomes were sold last month. Likewise with single-family homes, this was down 11% from the previous month and up 144.9% from the same time last year. As with single-family homes, the increase from the previous year was affected by COVID impacting units sold. Despite a decrease in units sold, more people who have previously looked at buying single-family homes are looking to the condo and townhome market.
While the demand exists for new homes, there are less buyers in the market for a new home. This is actually a good thing because it represents a shift in the market that makes it more balanced compared to what the market previously was earlier this year.
Inventory has increased slightly this month to 2,031 single-family homes available for sale, which is up 11.2% from the previous month and down 65% from the same time last year. We have seen more homeowners put their houses on the market after seeing other homes selling in the previous months and with inventory being as low as it was in the previous months, this is a welcome sign. Effective months of availability remains low at 0.6 months, and the slight increase in available inventory, while a welcome sign, still does not signify a balanced market.
Along those same lines, there were 529 condos and townhomes available for sale. This was up only slightly by 1.9% from last month and down 70.1% from last year. Effective months of availability is also 0.6 months and again shows an overall lack of inventory.
A balanced market that neither favors the buyer or the seller balances out at around 6 months of inventory. The low months of inventory means that market conditions heavily favor the seller.
If you’ve been thinking of selling, the market remains ripe for you to do so. While the market is softening slightly, we are still starved for inventory with many listings are receiving multiple offers.
Interest rates remain at historical lows and should they rise, we will begin to see a softening in the market. We don’t expect housing prices to drop anytime soon and this is still a good time to sell.
All data is May 2021 numbers, supplied by the Las Vegas Realtors. Deemed reliable but not guaranteed.