Las Vegas/Henderson Housing Update
Our local housing market is hot, right along with the summer weather. People still need and want to buy and sell homes. As a trusted ERA Realtor, I can help you explore your options. In Nevada, the only properties that cannot be shown to prospective buyers are those currently occupied by tenants.
Existing home sales totaled 3,325 for the month of July, a 5% increase from the same period a year ago, and the average selling price was $389,000, up over 8%. At the same time, new home sales accounted for 908 closings, up 15% year-over-year, with the median closing price of $382,000.
In the midst of a pandemic, with Las Vegas unemployment hovering around 18%, what is driving the healthy housing market? One, unlike the 2008 housing crash, existing homeowners are sitting on a record amount of built-up equity, allowing them flexibility in their housing decisions. Two, record low mortgage rates are giving buyers the ability to buy more house for their dollar. And third, maybe most importantly, people continue to migrate into the Las Vegas metro area, lured by no income taxes, low property taxes, and a higher quality of life. Net migration into the area topped 40,000 people in the past year.
Months Of Inventory
Months of inventory is the amount of time it would take to exhaust all available homes for sale if no additional homes came on the market. Currently the months of inventory number stands at 1.4 months, which is 41% lower than the supply we had a year ago. In a typical “balanced” market that number would be closer to 6. While the extremely low inventory represents a challenge for buyers, now is an extremely good time to sell a home in any price range, with multiple offers being received on many listings. As mentioned above, today’s record low interest rates may make this a great time to purchase – however; the inventory shortages mean it’s important to be pre-qualified with a lender before looking at homes.
As always, if you have any questions about this report or the real estate market in our region, please reach out to me. It would be a pleasure to assist you.