Las Vegas Real Estate Market Update (Special Edition) December 2020. Welcome to the December Special Edition issue of our monthly market update for Southern Nevada. In this issue we will be going over November 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 3,035 single-family houses that sold in November, down 5.9% from October, but up 26.1% from November 2019.
The median sales price of previously owned single-family homes, has set a record for the sixth consecutive month. It went from $340,200 in October to $345,000 in November, which is up 1.4% and up 12.4% 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 90 homes that sold for $1 million and over, compared to October’s 92 homes, a 2 home decrease.
The median sales price in the Luxury Market for November was $1,500,000 and in October that number was $1,382,500. A $117,500 increase in the median sales price.
The highest priced home sold for $7,400,000 with an asking price of $7,750,000. This home was located in The Ridges at Summerlin and had 7 beds, 8 baths, 7,073 sq. ft. with a lot size over 38,000 sq.ft. This home was on the market for only 10 days.
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.
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 November we had a total of 2,766 new listings, which was down 23% from October but up 4.3% from the prior year.
There were also a total number of 3,756 single-family houses listed without offers at the end of November, which is down 16.6% from October and down 42.5% from the prior year.
The housing supply in Southern Nevada is now at 1.2 months, which is down 11.3% from October and down 54.4% 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.
68.8% of the closings for the month November was on the market 30 days or less, in October this number was at 70.3% and in November 2019, 51.4% of the homes were on the market 30 days or less.
The top dozen communities as a whole for new construction had 4,453 sales January through September, according to Home Builders Research. Those same planned communities had 3,889 through the same period in 2019, the research firm reported.
We are going to go over the top 12 new home build communities.
Coming in at No. 1 for 2020 new home sales is Summerlin. It recorded 414 sales between July and September, a 20% gain over the third quarter of 2019. For the first nine months of 2020, it had 982 sales, 4% fewer than the 1,024 through three quarters of 2019, according to Home Builders Research.
A big chunk of the gain in 2020 is from one of the newer master plans, Valley Vista in North Las Vegas, which was ranked No. 2 in sales. It sold 320 homes in the third quarter, up from 122 in the third quarter of 2019.
For the year, Valley Vista has sold 792 homes, up from 232 through the same period a year ago, and is the No. 2 seller in Las Vegas.
The rebound in the new-home market began in June and remained consistent through the third quarter. After the first quarter, new-home building permits were up 15% versus 2019. After the second quarter, they were trailing 2019 by 11%.
Builders are now on track to surpass the 2019 total of just over 10,500 permits pulled after posting the three highest monthly totals of the year in the third quarter (1,232 in July, 1,119 in August and 1,260 in September)
Customer traffic in communities remains strong and shows no signs of slowing.
At No. 3 is the master plan Cadence in east Henderson sold 204 homes in the third quarter, 47% higher than the 139 sold in the third quarter of 2019. For the year, Cadence has sold 546 homes, 17% higher than the 465 through the first nine months of 2019, according to Home Builders Research.
At No. 4 for the year, master plan Inspirada in west Henderson had 160 sales in the third quarter, the same number as the third quarter of 2019. For the year, it had 442 sales, down 12.4% from 505 for the first nine months of 2019.
At No. 5, The Villages at Tule Springs, a master plan in North Las Vegas, sold 143 homes in the third quarter, down from 153 a year ago in the third quarter. For the year, it has sold 419 homes, 7% higher than the 392 through the first nine months of 2019.
At No. 6, master plan Skye Canyon in northwest Las Vegas sold 120 homes in the third quarter, three fewer than the third quarter of 2019. For the year, Skye Canyon has sold 395 homes, 8% more than the 365 a year ago.
No. 7 is Lake Las Vegas, the east Henderson resort master plan. The 85 sales in the third quarter were three times the 28 in the same three-month period of 2019. A strong summer bolstered Lake Las Vegas to 191 sales through the end of September. That is up 45% for the first nine months of 2020. There were 132 sales from January through September 2019.
No. 8 is planned community Coronado Ranch with 165 sales for the year. It had 194 through three quarters in 2019.
No. 9 is planned community Highlands Ranch with 163 sales. It had 174 through three quarters in 2019.
No. 10 is planned community Sedona Ranch in North Las Vegas with 132 sales, down from 168 a year ago.
No. 11 is master plan Southern Highlands with 117 sales, down from 148 a year ago.
No. 12 is master plan Mountain’s Edge with 108 sales, two fewer than 2019.
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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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