Las Vegas Real Estate Market Update – August 2020. Welcome to the August issue of my monthly market update for Southern Nevada. In this issue I will be going over July 2020 numbers.
The Las Vegas housing market is on FIRE, with record prices despite the pandemic’s effect on the economy. Las Vegas’ housing market hit another all-time high last month.
There were 3,325 single-family houses that sold in July, up 34.9% from June, and up 5.3% from July 2019.
The median sales price of previously owned single-family homes increased from $325,000 in June to $330,000 in July, which is up 1.5% and up 8.9% from the prior year. According to the Las Vegas Realtors, formerly known as the Greater Las Vegas Association of Realtors.
A lot of the value is in Supply and Demand. If there are not that many homes on the market, our inventory levels are low, and Demand outweighs supply.
If you are thinking about selling, NOW is an ABSOLUTELY AMAZING TIME TO SELL. Buyers are thirsty for inventory, and you are not competing with as many sellers!
Last month in the Luxury Market there were 64 homes that sold $1 million and over, compared to June’s 39 homes.
The median sales price was 1,350,000 in July and 1,375,000 in July. So a slight decrease in the median sales price for the luxury market.
Meanwhile, the tally of new listings jumped month-to-month but was still far below year-ago levels. So, for July we had a total of 3,703 new listings, which was up 14.1% from June but down 10.2% from the prior year.
Buyers are clearly here, looking for opportunity, but we have fewer homes. This will lead to less supply as we see, and will help keep the price levels strong!
There were also a total number of 4,806 single-family houses listed without offers at the end of July, down 5.4% from June and down 38.4% from the prior year.
Historically low interest rates, strong demand and a tight supply are what is “driving the market.” One factor behind the record prices is that more expensive homes are making up a larger share of the sales volume.
There is a now 1.4 months housing supply in Southern Nevada, last month this number was at 2.1 months. Which is down 29.9% from July and down 41.5% from prior year.
6 months is considered a Neutral Market, with less than 6 being a Seller’s Market, and more than 6 being a Buyer’s Market.
So, what does “Months of Supply” mean? Months of supply is the measure of how many months it would take for the current inventory of homes on the market to sell, given the current pace of home sales. …
Months of supply is a good indicator of whether a particular real estate market is favoring buyers or sellers.
Typically, a market that favors sellers has less than 6 months of supply, while more than 6 months of supply indicates an excess of homes for sale that favors buyers. We are still in a sellers-market, but it is not as strong as it was from a year ago.
59.7% of the closings for the month July was on the market 30 days or less, in June this number was at 59.1% and in July 2019, 57.6% of the homes were on the market 30 days or less.
Nationally, the average rate on a 30-year home loan was 3.02% last month, down from 3.62% in January, according to mortgage finance giant Freddie Mac.
The housing market still faces plenty of unknowns, given that Las Vegas still has a high unemployment rate and that the coronavirus is still raging in Southern Nevada. But the valley has recouped many of the jobs it lost after the pandemic hit.
Las Vegas’ jobless rate, just 3.9% in February, shot up to 34% in April. By June it had tumbled to 18% after casinos and other businesses were allowed to reopen, state officials reported.
If you would like to download the full report provided by Las Vegas Realtors, CLICK HERE!
Also, if you are thinking about buying or selling in the Las Vegas Valley, CLICK HERE or you can call me at 702-370-5112.
Well, I hope you have enjoyed my monthly market update for August 2020.
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Angela O’Hare, Realtor
The O’Hare Team
Home Realty Center