Greater Las Vegas Market Update
The residential resale market has completely recovered from the early pandemic pause! The overall resale market in 2020 ended up only 0.7% behind 2019 closings, but the SFR closings were up 0.78% from the previous year. However, it was truly the Year of the Luxury Market leading the parade with a remarkable 38.3% improvement over the 2019 year.
Of course, the large number of luxury market closings coupled with some of the highest closing prices we’ve seen, exaggerated the market’s average closed sales prices of SFR closings. By contrast, the median residential home price in the Las Vegas valley remained firm at $345,000.
Meanwhile, distressed sales continue to decline despite many who believe (or simply are hopeful) that foreclosures will be on the rise....actual market performance does not support that foreclosures are a significant part of our market.
*** SEE THE CHARTS AND GRAPHS BELOW ***
Market STATS Snapshot
There were 3,192 residential listings taken in January and that combined with a heavy sales demand have contributed to the decline in inventory – which is now only 1.1 months of SFR inventory. The 3,494 available SFR listings at this time is 744 homes less than last month. However, while the 4,111 residential closings in January contributed to a welcome uptick in end of year closings.
The median closed sales price of an SFR held firm at $345,000, but the hyperactive luxury market helped send the SFR closing average sales price from $426,626 to $446,739 for another 4.7% increase. Overall, that’s an 11.1% increase in the 2020 SFR average sales price.
Note of Caution: We are experiencing a lumber shortage which is causing some slowdown in new construction and major rehab projects. A recent Fortune report by Lance Lambert is titled; ‘Severe lumber shortage’ is adding $14,000 to the cost of a new home. Click Here to Read this Article
As the Covid crisis gets under control due to the global and national vaccination programs protecting the majority of people, 2021 is expected by the experts to continue to be a great market for both buyers and sellers as Las Vegas successfully transitions from solely an entertainment destination to a healthy metropolitan city that enjoys a stable and growing economy with a large and growing population of permanent residents.
This is a quick snapshot of new home sales vs existing home sales:
(most recent data available)