Las Vegas Housing Market Numbers

[Brad Bellstedt]

So, how's the Las Vegas housing market?

In the last 4 weeks (since 3/18/20)

2,460 properties have been listed for sale.

Inventory of homes listed for sale increased from 5,927 to 7,347. (24% increase)

1,620 properties for sale went under contract with a buyer to be purchased.

2,582 properties successfully completed the selling process and changed ownership.

The average number of days to sell a property DECREASED from from 47 days to 39 days. (17% decrease)

The average price of single family homes sold decreased by 4.7% from $377,790 to $360,000.

The median price of single family homes sold decreased by 2.3% from $320,000 to $312,500.

1,134 single family homes listed for rent signed a lease with a tenant.

The original list price to final sale price ratio was 96.5%, increased to 103.2% and decreased back to 96.5%

The number of weeks of inventory available increased from 8.7 weeks to 12.8 weeks. (47% increase)

So what does this all mean?

It means the housing market, although slower than we would anticipate for this time of year, is still holding up very well considering the circumstances. The market is showing no signs of a “crash and burn” 2008 scenario here but rather a pent up demand for housing as we wait for the economy to return to normalcy.

The current pace of the market is comparable to the pace we routinely see from December-February of a typical yearly cycle. Far from the market crash we saw back in 2008.

Consumers are less concerned about their employment are still shopping for and purchasing homes as illustrated both by the number of homes to go under contract with a buyer and the number of homes to complete the process and actually sell. In addition, the average days on market to sell DECREASED. A hugely reassuring statistic.

Now we did see a decrease in the average and median home sale prices but I believe the reason for why that is relies simply on the law of supply and demand.

With the closings of so many businesses here in Las Vegas and around the world went the financial stability for so many potential home buyers of homes here in Las Vegas. As the pool of potential buyers for homes decreases, so will the number of offers written and submitted to sellers. With fewer potential buyers to compete against in the market, the odds of creating an auction style type of bidding war amongst buyers also decreases. The result is that buyers are able to reach an agreement with the sellers for potentially less than they would have had to offer had a competing buyer been there to help drive up the price. The more regularly this happens, the more it is reflected on a macro level throughout the market.

[Kyle Spearin]

@Brad Bellstedt thank you for sharing this!