Las Vegas Real Estate Market Update – November 2020. Welcome to the November 2020 issue of my monthly market update for Southern Nevada. In this issue I will be going over October 2020 numbers.
The Las Vegas housing market is still 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 3,225 single-family houses that sold in October, down 1.4% from September, but up 11.2% from October 2019.
The median sales price of previously owned single-family homes, has set a record for the fifth consecutive month. It went from $337,250 in September to $340,200 in October, which is up .9% and up 10.8% from the prior year.
If you are thinking about selling, NOW is STILL an ABSOLUTELY AMAZING TIME TO SELL. Buyers are thirsty for inventory, and you are not competing with as many sellers!
Plus, 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!
Last month in the Luxury Market there were 92 homes that sold for $1 million and over, compared to September’s 87 homes, a 5 home increase.
The median sales price in the Luxury Market for October was $1,382,500 and in September that number was $1,450,000. A $67,500 decrease in the median sales price.
The highest priced home sold for $7,000,000 with an asking price of $8,249,999. This home was located in MacDonald Highlands and had 6 beds, 9 baths, 11,375 sq. ft. with a lot size over 49,000. This home was on the market for 206 days. (We featured this home on The Rob & Ang Real Estate Show)
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.
Also, these record low mortgage rates are providing much of the fuel in the market, by letting people who are still working or have strong finances be able to lock in lower, more affordable monthly payments.
Nationally, the average rate on a 30-year home loan last month was 2.83%, down from 3.69% a year earlier, according to Freddie Mac.
And let’s not forget about all the people fleeing from California, Oregon, Washington State, New York, and New Jersey to move to a state with lower taxes and lower cost of living. Who are paying cash, driving our prices up due to the low inventory. Again, typical Supply and Demand.
So, for October we had a total of 3,592 new listings, which was down 6.7% from September but up 1.4% from the prior year.
There were also a total number of 4,501 single-family houses listed without offers at the end of October, which is down 6.2% from September and down 37.6% from the prior year.
The housing supply in Southern Nevada is now at 1.4 months, which is down 4.9% from September and down 43.9% 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.
70.3% of the closings for the month October was on the market 30 days or less, in September this number was at 69% and in October 2019, 52.6% of the homes were on the market 30 days or less.
An estimated 14.8% of the Las Vegas Valley workforce was unemployed in September, the highest in the nation among large metro areas.
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.
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