Las Vegas Single Family Home Sales Show Market Is In Transition
The Las Vegas housing market is in transition! The boom has slowed considerably. Inventory is growing, and the median price has risen just 1% since May. In November, the median price remained at $297,000 where it has been since August. Year-to-year, the increase looks impressive at 12.5%, but keep in mind that most all of that increase occured before May. Inventory now sits at a 3-month supply, well above the 1.29-month supply in March.
Now, why does any of this matter? It is an indication that we are moving from a sellers’ market to a more stable market. This does not mean we are yet in a buyers’ market. It just means sellers will have to price their homes more accurately and buyers can at least ask for sellers to contribute to closing costs. Also, buyers will have inventory to look at that will not have received multiple offers on the first hour of public listing!
There is also news on new home sales. According to an article written by Eli Segall in the November 29, 2018 Las Vegas Review Journal, new home sales continue to sell at a very strong pace, with a median price of $404,100 in October. He also noted strong increases in attached home sales for condos and townhomes. As these are frequently less expensive than single family homes, many buyers are finding them to be an attractive option. The sales of attached homes rose a strong 40% from a year earrlier, with a median price for attached homes of $265,466 in October. The median price is expected to go down in the future with the introduction of some more affordable developments currently under construction.
Overall, Las Vegas’ housing market remains strong, but the heat is dissipating.