We have been hoping for an influx of properties to hit the market this Spring, but so far inventory only continues to shrink. This high demand coupled with low inventory continues to put upward pressure on home prices.
The market is extremely competitive for buyers right now, even in the realm of new construction.
Read or watch for the full March 2021 Las Vegas Real Estate Market Update. All data from LVR February 2021.
Median prices of single-family homes increased significantly from the previous month to $355,000. This is up 2.9% from last month – the appreciation you would normally see in a year of a healthy, stable market happened in just ONE MONTH – and up 12.3% from the same time last year.
Likewise, median sales prices of condos and townhomes saw an uptick at $197,500. This is up 2.3% from last month and up 12.9% from the same time last year.
Extremely high demand and ever-shrinking inventory will continue to push median home prices up.
2,767 single-family homes sold last month. This was up 4.9% from the previous month and up a total of 12% from the previous year. Demand was high pre-COVID and continues to soar as more buyers enter the market for a new home.
Similarly, 722 condos and townhomes were sold last month. This was up 15.7% from the previous month and up 16.8% from the same time last year. With higher demand of single-family homes pushing median sales prices up and inventory to an all-time low, more buyers are beginning to turn to condos and townhomes.
An interesting data point to look at moving forward is pending sales, which give us a sneak peek into what we can expect next month. Pending single-family sales were up 9.2% year over year, and condos and townhomes were up 8.6%
We don’t expect huge gains in units sold year over year. The demand is there, but there are hardly any homes available on the market for buyers to purchase!
As demand soars, inventory continues to shrink exponentially. There were just 1,677 single-family homes available for sale, down 27.6% from the previous month and down a whopping 60.4% from the same time last year.
Along those same lines, there were 675c ondos and townhomes available for sale. This was down 20.3% from last month and down 44.4% from last year.
Currently, the single-family resale market is down to just 0.6 months of inventory and condos and townhomes have also dropped from the previous month to 0.9 months. A balanced market that neither favors the buyer or the seller balances out at around 6 months of inventory. This huge dip in months of inventory means that market conditions heavily favor the seller, resulting in buyers resorting to various methods to make their offers more competitive – such as waiving the appraisal.
If you’ve been thinking of selling, now is the time. Many listings are receiving multiple offers within hours…and buyers are often paying over ask and willing to pay a certain amount above appraised value, with many fully waiving home appraisals as well.
Although interest rates have increased slightly to around 3%, they are still at historical lows. If you’re in the market to buy, you have to move fast and be very competitive with your offers.
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All data is February 2021 numbers, supplied by the Las Vegas Realtors. Deemed reliable but not guaranteed.