Synergy Synopsis: The State of the Market

Real estate trends in Las Vegas can be difficult to predict, especially since the 2008 recession and the long, slow recovery that took place over the years to follow. At Synergy, we keep our finger on the pulse of the market and remain aware of the trends and any influencers like the COVID-19 pandemic, the upcoming elections, natural disasters, or really anything that could affect how we do business. We constantly read up and keep tabs on the latest news and the market’s proclivities. To that end, here are some interesting statistics about the market we’ve picked up on over the last few months.

• The asking price of homes on the market in Las Vegas is up 8.4% since last September while the number of homes available has decreased 13.5%.
• The median list price of homes in Las Vegas was $320K in September 2020, up 8.5%.
• Sales of single-family homes showed an increase of 18.9% year-over-year.
• 69% of the closings for the month of September were on the market 30 days or less.

As hard as it is going through the pandemic and the trouble it has caused the real estate market in Las Vegas, there are plenty of signs of life as we move into the fall and winter months. While doing business as usual got challenging when the virus hit, we weathered the storm and saw a significant rebound soon after and continue to see significant upswings as the months go by. We’re certainly not on the other side just yet and there’s still hope as the unemployment rate, which was down at just 3.9% in February, skyrocketed to 34% in April, resulting in a tremendous hit to our overall economy, not just real estate. By June, it had dropped to just 18% as casinos and other businesses began to slowly re-open and the economy struggled to find its footing again.

Despite the still-high unemployment, Las Vegas’ market is booming and with interest rates so low it’s a great time for both sellers and buyers to be in the market to get moving in one direction or the other. For sellers, the time couldn’t be better as the inventory is low and the prices are high. For buyers, finding their dream home at an interest rate around 3%, with decent credit, of course, they can look for something at a higher price point or perhaps one with a little more than they thought they could afford; maybe throw in that extra bedroom or swimming pool.

As we move into fall and winter, the continued expansion of the Las Vegas market is expected to remain steady as our population continues to grow with the always relevant allure of low to non-existent personal and corporate income taxes, quality of life, and the abundance of sunshine. New residents, especially from over-crowded and expensive California, continue to pour in at alarming rates. It’s estimated that some 10,000 people were moving to Nevada every month in 2019. And with an appreciation rate of an unprecedented 8.31% over the last ten years, it’s no wonder people are investing in real estate here in Southern Nevada. Here are more relevant statistics we found regarding the end of summer and what the market looks like moving into fall.

• 3,270 single-family houses sold in September, up 12.4% from August.
• In September, there were a total of 3,851 new listings, down .9% from August but up 9.3% from the prior year.
• 4,798 single-family houses were listed without offers at the end of September, up 3.4% from August, but down 34.6% from 2019.
• In August, this number was at 61.3% and in September 2019, 53.9% of the homes were on the market 30 days or less.

These numbers are pretty impressive, especially when compared to last year’s figures. Imagine what brokerages would be looking at if the pandemic hadn’t hit at the beginning of the year. It is easily apparent to see how the coronavirus affected this summer’s market, but compared to other parts of the U.S., the market here weathered the storm and came out in good shape. This past summer would likely have been a record-breaking year for Las Vegas real estate if not for the pandemic.

As for predictions for 2021, there seem to be signs that the market will keep on moving in the same upward swing as it has been for the last few years. The Las Vegas home values will be higher in 2021 than they were in 2018 and we anticipate this trend to continue. For buyers, inventory will continue to increase at the regular pace it has been following, and they should be able to take advantage of new developments and communities springing up as demand remains high. This positive trend will also precipitate an anticipated appreciation of home values by 4.4% over the course of next year, further creating more demand and allure for buyers to enter the market. For sellers, this increase in demand will favor them putting their homes on the market since this lack of inventory should raise the price of their home. And it may be time for them to enter the market, sell their existing home, and upgrade to a bigger, better or home better yet make a downpayment on an investment property while the getting is good. Either way, whether you’re a buyer or a seller, the prediction for the 2021 market looks pretty steady with growth and perseverance across the Las Vegas market to be two words that could be used to describe it. This all, of course, under the backdrop of the pandemic.