January 2019 continued the Las Vegas home sales trend of fewer sales at slightly higher prices. The $303,000 median sales price was the highest here since June 2007, which was just as prices started spiraling downward for three and a half years. However, adjusted for inflation, we are nowhere near that peak number.
So, how is the Las Vegas real estate market? Is Las Vegas real estate in a bubble? Sales, although down 20% from the year before, remain strong. Low mortgage rates are helping people decide that they should buy now rather than hope prices and interest rates will go down. Most likely, neither will. So, are we in a bubble? No. Our local economy continues to grow, bringing new residents to fill new jobs. And we still have 3 billion-dollar-plus construction projects under way.
Our inventory rests at about a four month supply, which, for Las Vegas, is about normal. Gone are the days sellers would have three or four offers within a day of listing their home for sale. In fact, for the past two months, more homes listed for sale on the market have reduced their listing price than new homes have come on the market. For example, last week 879 homes on the market reduced the asking price, while only 735 new listings entered the market.
The much feared rise in interest rates appears to have moderated. It seems the Federal Reserve is less inclined to raise interest rates as much in 2019 as it did in 2018. Most lenders are offering 30-year FHA loans well under 5% these days. We can only hope that continues.
So, what is the Las Vegas real estate forecast for 2019? In the opinion of this REALTOR® Broker, I see the number of sales decreasing 5-10% compared to 2018 while prices inch upward because of the growth of the economy.