Las Vegas Housing Market Updates

The most accurate analysis and predictions about the Las Vegas housing market

Las Vegas housing market updates that you read in news publications or other Realtor sites are from the Realtor Association’s monthly magazine. However, this report is incomplete and often misleading.

One of the most prominent errors is using the median price of Las Vegas homes or condos, which only show market direction, with price per square foot of homes or condos. Only the price per square foot measures whether or not home prices have gained or lost. We discuss it in a blog post titled median price doesn’t measure home price gains, losses. What does?

Mastery of the Las Vegas housing market allows us to warn our buyers about quickly rising prices way before they happen or when a sharp downturn is underway.

Las Vegas real estate market June 2021, exploding prices

There is a lot of talk about the Las Vegas housing market hitting a break since homes and condos sales have shrunk in May 2021. In this video, we show the home listing inventories by the price range. FHA buyers can only make an offer on 615 listings ad even conventional loan buyers with a 20% down payment are priced out of 733 out of the 2031 available listings. We will additionally forecast how long the eye-popping price gains will go on and what buyers and sellers should do in this extreme seller market

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Video Transcript:

The Las Vegas real estate market surprised many observers since home sales which should escalate in May through August went down in May 2021. But the price per square foot of single-family houses appreciated by a record amount at the same time. In this video, we discuss:

Why even the super tight active home listing inventory that you see in news articles is misleading. And in reality, the vast number of buyers are priced out of one-third of the meager available home listings, which we will explain by showing you active listings by price range.

The median price and price per square foot of Las Vegas houses by June 2021

Unbelievable home price appreciation rates per month in 2021

The reasons for these eye-popping price gains

A brief overview of condos and townhomes market as it is similar to single-family homes

How long the price appreciations will go on, and

What should buyers and sellers do in the current market? We will talk about getting under-written-approved to compete with cash buyers on the buyer side and a clause that seller’s agents should put in their listing to maximize the selling price.

Single Family homes market

The active listing inventory of single family houses at the beginning of June stands at 2,031, while 3,731 home listings have been added in May, and 4411 are currently under contract.

Las Vegas home sales in may 2021 has shrunk to 3205

However, home sales have dropped to 3,205 units which are 341 less than last month, and it is not unusual as the same thing happened in 2019. However, this time around, excessively overpriced units and lack of listing inventory are to blame.

Available Las Vegas home listings by the price range

To gain some insight into available listings, we are going to show them by price range. As of June 9th, 2021, only 80 available home listings are currently published in the MLS with an asking list price of less than $250,000. Please note that we are pulling all houses in a city of two million without filters like bedrooms, baths, lot area, or location.

Of these, only 17 are two stories, 49 were more than 40 years old, and 18 units were built after 2000, so the buyers can get options like Low-E windows.

The following price range is from $251,000 to $376,000, the FHA loan limit, plus a 3.5% down payment. Only 535 available listings are available in this price range, including 202 two-story houses, 325 one stories, and only 185 were built after 2000.

So, FHA loan buyers representing two-thirds of all transactions can choose from only 615 listings in the Las Vegas metro and are priced out of the rest.

The conventional loan limit in Clark County is $548,250, which with the addition of a 20% down payment equals $658,000. 923 houses are listed in this price range, and many of these were in the FHA price range before more than 22% home price appreciation in the last 12 months.

Of these, 542 units are two-story, and 361 are one-story, while more than half were built after 2000. So even conventional loan buyers with a 20% down payment are priced out of 733 out of 2,031 listings and have 1,298 choices.

So, the vast majority of buyers can only afford 1,300 houses. The insufficient listing inventory along with strong demand is the reason for the eye-popping price gains.

Median price and price per square foot of Las Vegas homes by June 2021

Supply and demand in real estate is measured as the months of listing inventory calculated by dividing available listings by the unit sales in a month. It stands at .6 months, which is a negligible increase from April and far from four months of inventory which is necessary for stable pricing.

Median price and price per square foot of Las Vegas homes by June 2021

Supply and demand in real estate is measured as the months of listing inventory calculated by dividing available listings by the unit sales in a month. It stands at .6 months, which is a negligible increase from April and far from four months of inventory which is necessary for stable pricing.

By June 2021 median price of Las Vegas homes is at 385000 dollars

The median price of Las Vegas for May is $385,000, which is 2.7% higher than April and 11.6% higher so far in 2021. But the median price only shows the market activity in lower price ranges.

sales price per square foot of Las Vegas homes has appreciated to $216 by June 2021

A better criterion to measure home price appreciation is the price per square foot of units calculated by dividing the total square footage of all houses sold with accumulated price in a period. The price per square foot of single-family houses for May 2021 is $216 per square foot. But not all homes appreciate at the same rate. Lower priced houses percentage of price appreciation is more than the more expensive houses.

Las Vegas home price appreciation rates per month in 2021

This table shows the Median and the price per square foot appreciation of homes sold in several periods. We will show the median price gains but will discuss price per square foot appreciations.

Las Vegas single-family homes 2020 price appreciationLast 12 monthsJanuary to February 2021March 2021April 2021May 2021January to May 2021
Median price appreciation13.1%22.2%2.9%2.25%3.3%2.7%11.6%
Price per square foot appreciation11.5%22.7%3.15%3%3%3.85%13.7%

The price per square foot of single-family houses appreciated by 11.5% in 2020. The following three columns show the price per square foot appreciation in the last twelve months, and every month in 2021. And these home price appreciation rates are mind-boggling.

In our last Las Vegas real estate market video, we predicted that the three percent appreciation rates of previous months would be surpassed in May through July, and we were right on the mark.

Las Vegas homes price per square foot appreciated by an incredible 3.85% in May, and this high rate should continue for the next three months.

Average days on the market and original asking list price versus the sales price

While the average days on the market had fallen to a record low of 29 days in April, it has shrunk to 19 days in May. There is an influx of cash offers by some wealthy real estate investment firms, foreign investment, and smaller investors buying everything they can. This is why financing buyers are hitting a wall.

Realtors overprice their listing in strong seller markets, and one reason is future appreciation, so the initial asking price is usually high. That is why they sell for about 97% to 98% of the original asking list price. Yet homes have been trading for 101% of the original asking list price.

Las Vegas condos and townhomes market

Available listings are just as tight when it comes to condos and townhomes. There are 630 condos and townhomes currently listed in the MLS of these 396 are condo listings and 234 townhomes. 1,176 units are now under contract.

Las Vegas condos and townhomes sales has shrunk in may 2021 to 920 units

Condos and townhouse sales were at 920 units in May, which is 86 units less than April. Again, low listing inventory and unrealistic asking list prices are to blame. That puts the months of listing inventory at .6 months, just like single-family homes.

The median price of Las Vegas condos and townhomes is at 202,500 dollars by June first 2021

The median price of condominiums and townhouses for May 2021 is $205,250, which is 1.9% higher than in April. The appreciation rate so far in 2021 is at 6.35%. And this is an excellent example of why the median price fails miserably in showing how much condos and townhouses have appreciated.

Price per square foot of Las Vegas condos and townhomes hit a new record at $186

The price per square foot of units sold in May is $186 per square foot, which is 3.3% higher than April and 11.3% higher than January 2021.

Average days to sell hit a record low of 30 days and the sales price to the original asking list price is 100%.

How long will these extraordinary price gains go on

Effective months of listing inventory Las Vegas homes May 2021 has been less than two month for majority of last four years

We have no expertise in the national and world economy, but we know the Las Vegas real estate market very well. In an interview, the CEO of Redfin, one of the biggest real estate websites, predicted that prices would go down this year. When it comes to Las Vegas, we beg to differ.  For home prices to stabilize or start going down, we have to hit four months of listing inventory.

In the spring or summer, the average home sales will surpass 3,200 houses. Thus, we need to have 3,200 x 4 =12,800 available home listings. So, we need an additional 10,747 more listings, and not only don’t we see that happening, we don’t think that we will reach 5,000 this year.

Tight inventory is not unusual in the Las Vegas real estate market. In the last four years and five months, we have hit four months of listing inventory once and have been over three months inventory for seven months. The months of listing inventory have been less than two months for about 29 months.

So, as long as the available listing inventory is about two months or less, home price gains will be high, single-digit, or double-digit. So home price appreciation will go on unabated for the rest of the year, barring a catastrophe.

Buying and selling in a hyper seller Las Vegas real estate market

The buyer’s Realtor and what you do to prepare for buying, decide success or failure in this market, while success means future equity due to rising prices. The home buyer’s Realtor should be knowledgeable about what to do in this sort of market.

Waiting to write an offer, asking for a high seller’s contribution, trying to lowball a listing, disagreeing with the listing agent’s Escrow Company, or long escrow time all lead to a rejection of the offer.

Financing buyers and first-time homebuyers hitting a wall and collecting a pile of rejections

Most financing buyers are at fault for their misery since they refuse to do the right thing and get underwritten-approved or close to it before making an offer so they can successfully compete with the cash buyers.

Underwritten-approved means that the buyers have done everything that they are going to do after getting into contract prior to writing a contract. Like submitting financials and obtaining a letter from the bank that states they are qualified for a loan contingent on appraisal. First-time home buyers that use a down payment or mortgage assistance are already under-written approved, and their Realtors should forcefully inform the sellers.

We have explained how in the mortgage guide for Las Vegas homes, condos, high-rise buyers-video. We highly recommend that prospective buyers watch it.

On the seller side, the last thing that you need is a Realtor that sells your home in an hour or a couple of days. It is prudent to put in the MLS listing to allow for several days, like five to seven days, before the seller will review the offers. This allows all qualified buyers that like your house to be able to visit it and make an offer. The other point is that when your Realtor gets a couple of offers early on, he or she can put in the status field multiple offers received. Doing so results in better offers. If there are multiple offers, he or she can send the buyers submit your highest and best offer form, resulting in getting the maximum offers.

Lastly, we keep getting unsolicited postcards from one percent Realtors telling us that this is the best time to sell our house. It is not. Keep your home as long as you can, you will get 10% more by fall. And if you have to sell, please contact us at 702-478-7800.

If you find our video about Las Vegas real estate market June 2021, exploding prices, please like it and subscribe to our real estate channel.

This is Karen Saberzadeh of Las Vegas homes, condos, and luxury high-rise condos, wishing you a great day.

A seismic shift in the Las Vegas real estate market May 2021

A seismic shift in the Las Vegas real estate market May 2021

Video Transcript:

This video explains what is going on in this extreme seller’s Las Vegas real estate market. Along with:

Why shouldn’t you wait for an avalanche of foreclosures and short sales?

Eye-Popping price hikes so far in 2021, even in the stagnant high-rise market

Exploding Las Vegas economy

Why will these price gains go on unabated for the remainder of 2021?

What is the best course of action for house and condo buyers and sellers? That is why you watch these videos anyway.

The title of our last October video was pessimistic about the Las Vegas real estate market. Our information was based on scary numbers about upcoming evictions and a significant number of homeowners falling behind in their mortgage. Well, an election happened, and 2.8 trillion dollars in additional printed money prevented an avalanche of evictions. Only 2% of homeowners are currently underwater, and given the skyrocketing prices, that is shrinking further. So do not hold your breath for a significant number of forecloses in the future, even though short sales may increase a bit. And as we will explain, their effect on the home prices will be negligible, except for finding a good deal here and there. So let’s dig in and see what is going on.

The only criterion governing residential real estate pricing

The only factor that controls homes and condos pricing is supply and demand, or the number of active listings divided by unit sales. That is it.

Supply Versus demand

Months of listing inventory in April 2021 stands at .5 months

At the end of April, only 1827 home listings were listed in the MLS that were not under contract, which is slightly higher than the last two months but not enough to make a dent. Three thousand six hundred ninety-nine new listings were added in the same period.

Las Vegas home sales in March and April of 2021 have far surpassed the sales number in the past two years

At the same time, 3574 houses have sold, which means pretty much every listing that is priced reasonably is trading within a month except for highly overpriced ones. Please note that March 2021 home sales dwarf the sales numbers in the previous two years, as does April’s. But the April sales numbers in 2020 were affected by the Covid-19 lockdown.

Supply and demand is calculated by dividing active listing inventory by the sales numbers, and the result is called months of listing inventory which stands at .5 months. This low number is why the skyrocketing prices will go up until we hit at least four months-worth of active listing inventory. To reach a price neutral period we need 3547 x 4 = 14188 – 1827= 12,360 more active listings. And we can pretty much guarantee that is not going to happen this year. We highly doubt that we could reach 35% of that number in 2021. So price gains will go on for the remainder of the year. But at what rate?

The median price and price per square foot of Las Vegas single family houses

The new record median price of Las Vegas homes is at $375,000

The median price of Las Vegas homes in April 2021 stands at $375,000, which is $30,000 or 8.7% higher than January. The year-to-year median price gain of single-family houses is at a misleading 21%. But we have corrected it to 17.2%, since the median price of houses stood at $319,000 in March, before Covid-19, and it appreciated to $325,000 in July, so $310,000 for a couple of months during the lockdown period is misleading. But the median price only shows the market direction in lower price ranges.

The price per Square foot of Las Vegas homes in April 2021 set another record at $208 per square foot

The price per square foot of all homes sold is calculated by dividing the square footage of all units sold in a period by their accumulative prices. Price per square foot is a better criterion that shows whether home prices are appreciating or not, and it stands at $208 per square foot in April.

Las Vegas home price appreciation rates per month in 2021

This table shows the Median and price per square foot of homes sold in several periods. We will show the median price gains and price per square foot appreciation but will discuss the latter.

Las Vegas single-family homes

 2020 price appreciation

April 2020-2021

January to February 2021

March 2021

April 2021

January to April 2021

Median price appreciation

13.1%

21% but it should be 17.2%

2.9%

2.25%

3.3%

8.7%

Price per square foot appreciation

11.5%

18.8%

3.15%

3%

3%

9.50%

The price per square foot of single houses appreciated by 11.5% in 2020. The following three columns show the price per square foot gains per month in 2021, and it is going up at an eye-popping 3% per month. We can pretty much guaranty that this appreciation rate will be matched or surpassed every month through August. This means that homebuyers will be paying at least 12% more in only four months. For a $375,000 median-priced house, buyers will pay $45,000 more than they would pay now.

If price appreciations keep the same pace, the homebuyers rush due to skyrocketing prices could lead to 20%-30% home price appreciation this year.

Average days on the market until sold

The average days to sell Las Vegas homes has shrunk to 30 days

The average days on the market have fallen to 30 days due to the influx of cash buyers and should go down further as we approach summer.

Original asking list price versus the sales price

Las Vegas homes are selling for ore than 100% of original asking list price which is often high

This graph shows the original asking list price, which is often high versus the sales price, and it is a little higher than 100%. This is why you read in news articles that a full-price offer is a weak offer nowadays.

What should financing homebuyers who are hitting a brick wall do?

We did say in the beginning that the only factor controlling home prices is the months of listing inventory. However, it is influenced by the historically low mortgage rates, which amount to free money given the upcoming inflation. Escalating prices lead to a rush of investors who pay with cash, as well as owner-occupiers.

So financing buyers, especially first-time homebuyers, hit a brick wall, but there are ways around that. Call us at 702-478-7800 to see how. Financing buyers can compete well with cash buyers through becoming under-written approved for their mortgage. We explain the process in the mortgage guide for Las Vegas homes, condos, high-rise buyer’s video.

A seismic shift in the Las Vegas housing market

The seismic shift in the Las Vegas real estate market, especially where luxury houses and high-rise condos are concerned, is due to the influx of California buyers or those moving here from areas like Denver or Seattle. Our residential real estate is dirt cheap to them. Someone owning a 1967 two-bedroom house in Los Angeles could pay cash for a luxury house in some of the best locations here.

As we explain in Las Vegas high–rise condo updates, its recovery is more like a rocket recovery than a V-shaped recovery. High-rise condo sales and prices were stagnant from 2019 to November 2020, and then they took off in the winter of 2020. Some units are selling for 10% to 15% more than January. However, competition for high-rise condos pales compared to traditional houses and condos, and there will be limited opportunity to buy these before prices go even higher.

As for the economy, which is already exploding, Strip casinos have set a record for winning in the past eight years, and local casinos have broken their all-time winning record. And they have done it based on 60% occupancy. Imagine what happens in the summer with masks removed indoors and 100% occupancy. At the same time, Resorts World and MSG Sphere are going to come online as well.

The deal is that the US economy has added more than five billion dollars in printed money, and we bet our bottom dollar that our fair city will get its cut, especially with the pent-up demand. Do not wait for prices to come down any time soon, and when they do, it will be from much higher levels than now. One of the most stupid news stories that we have seen this year concerned an older gentleman who had sold his house and was renting while waiting for the sanity to return to his real estate market. If Florida is anything like our city, he will pay 30% or more for the sanity.

We do not believe that barring another catastrophe, you will see the current price again.

Las Vegas condos and townhomes market.

Months of listing inventory Las Vegas condos and townhomes April 2021 is at .5 months

 We will not waste much time here as the condos and townhomes market mirrors the single-family home. Again our months of listing inventory are at .5 months, and unit sales at 1024 units have surpassed March of 2019 and 2020, which is before Covid-19 hit, by 56% and 40%, respectively. At the same time, the number of active listings for April is 592. The median price of Las Vegas homes and condos for April 2021 is $202,450, and the price per square foot of units is at 180 per square foot.

Again the monthly price per square foot appreciation of units for January 2021 through April is 3.6% from January to February, .6% for March, and 2.6% in April. The appreciation rates will escalate for the summer months.

Las Vegas townhomes and condos

February

March

April

January to April 2021

Price per square foot appreciation from January 2021

3.6%

.6%

2.68

7.8%

It should be noted that the condo and townhomes market heated up a bit later than single-family houses because many buyers are getting priced out of single-family houses. And if they continue appreciating at the same rate, condos and townhomes will appreciate about 20% this year.

What should buyers and sellers do in the current Las Vegas real estate market?

In normal years and this year is anything but, homes and condos start appreciating in February, gather pace in April, and appreciate the most in June through August. Price hikes level off in September through Thanksgiving and go down a bit from Thanksgiving to Christmas.

We have shown that the price of a median-priced home could appreciate by $45,000 by August. So if you have to sell, wait and list your home in August and hopefully call us at 702-478-7800 to help get the maximum money out of it.

If you are a buyer, again call us, but if you don’t, do all you can to buy as soon as possible. Summer months will be much harder to get an offer accepted. But if you follow our mortgage financing advice and hire Realtors like us who have been successfully navigating the same kind of housing market a couple of times, there is no reason that you shouldn’t succeed after a few tries.

The spoils go to the prepared and persistent, and in this case, early birds get the worm. We were usually the first to make an offer on our deals, and if you are waiting even one day to make an appointment to see the house, you lose.

Lastly, the rich get richer and the poor don’t. Rental rates for entry level condos are up by more than 20% since 2019 and moving higher, the same goes for smaller houses. And sooner or later we will run into affordability issues, but we are obviously not there yet.

If you find the information in the seismic shift in the Las Vegas real estate market in May 2021 helpful, please like the video and subscribe to our real estate channel.

This is Karen Saberzadeh of Realty One Group and Las Vegas homes, condo, and luxury high-rise condos wishing you a great day.

Pessimistic about the Las Vegas housing market September 2020

We are well aware of the stellar sales numbers and new record prices of Las Vegas homes in July and August 2020. Yet we are pessimistic about the future of the Las Vegas real estate market in the next few months. To see why we have included about five minutes of an hour fifteen minute presentation by one of the most prominent economists in Las Vegas. In this alarming video, you will see some eye-popping statistics about how much trouble the Las Vegas economy is in at this time.

Video:

why are we pessimistic about Las Vegas real estate market

Video transcript:

In this video, we will discuss the Las Vegas housing market for August 2020. And then will share with you some eye-popping numbers about how much trouble the Las Vegas economy is really in. You will not find this information in a regular housing market report. Read More

We have been warning about the Las Vegas real estate market since April 2020, while home sales are back to or surpassing 2019 numbers. Additionally, home prices set a new record in July and August. You might think we must be crazy. That is fair, but we are not delusional and will get to the reasons right after discussing what happened to the Las Vegas real estate market for August.

Only two factors control future home pricing in Las Vegas, supply and demand or home sales numbers and the active listing inventory.

While demand has never been in doubt, we believe that the number of listings will go up significantly in the next few months, arresting the price gains and probably leading to price cuts. Now, let’s discuss August market statistics.

Las Vegas real estate market statistics for August 2020


Las Vegas home sales in August was at 2913

July 2020 homes sales have surpassed the previous year’s numbers, and August is not far behind last year.

Las Vegas housing market statistics for August 2020

At the end of August, we had 4639 active home listings that were not under contract. And this number is 40% less than the same time last year, and the main reason for escalating prices in challenging economic conditions.

Starving listing inventory in Las Vegas. Only forty seven 2200 to 2500 square foot home listings in a large area

To make the point, here is a map of the Las Vegas metro. If a buyer is looking for a 2200 to 2500 square foot single-family home, which is common in a large area bordered by Highway 215 and Summerlin Parkway, mountains, and I-95, they could only find 47 units regardless of price, lot size, number of bedrooms, and the pool. If the buyers are looking for a one-story house, only 12 will qualify.

The median price of Las Vegas homes set a new record at $335,000 in August

The median price of Las Vegas homes has been escalating by $5,000 per month since June and set another record at $335,000, which is 9.8% more than January 2020. But the median price only shows the market direction in lower price ranges.

The price per square of foot of Las Vegas homes is $183 for August 2020

The real measure of whether or not home prices have gone up or down is the price per square foot of all homes sold. In August, the price per square foot of single-family houses stands at $183 per square foot, for about a 4% price appreciation since June 2020 and 6.4% since January. So, a $200,000 home in January is selling for about $213,000 by September. 9.8% median price gain since January is meaningless.

The months of active listing inventory controls home pricing


Bella Vista condos for sale in Henderson

This chart shows the months of inventory, which is calculated by dividing the number of active listings by sales numbers. The months of listing inventory for Las Vegas homes dipped to less than 2.2 months starting February 2020, save April and May, due to the lockdown. The months of listing inventory for August is at 1.6 months, which should lead to mid-double-digit real home price gains in a year, but in a normal market.

In our previous video Irrational Exuberance about Las Vegas Housing Market, we explained that the months of listing inventory live in isolation and is only affected by the active listings and sales numbers. However, the number of active home listings and sales numbers are susceptible to economic conditions. In bad economic conditions, the number of for-sale listings would go up appreciably, stopping price gains and, in some cases, leading to price cuts.

Why we are not optimistic about the Las Vegas housing market in the next few months

Now, let’s discuss why we are pessimistic about the Las Vegas housing market despite the great sales numbers and record prices.

Masoud insists on saying this one line! How is this possible?

We have been following the news about the Las Vegas economy. But a presentation by Mr. Jeremy Aguero, one of the most prominent economists here, put it all together neatly in an hour and fifteen-minute presentation. You will not see these statistics in a Las Vegas real estate market video. We will play about five minutes of it here, which is named pause.

Pausing the US Economy to get to the other side of COVID-19 crisis

The pause was to allow us to say we are going to put the United States government on pause for a moment and we’re going to get past the Covid-19 crisis and then the economy is going to go back up and it’s not a bad idea.

It’s exactly what we should have been doing as a country. The problem is it may not be enough to get us over this Covid-19 crisis, particularly if a second wave starts to pop up as schools and universities and things like that start to open. And it matters to us, because how are households using these stimulus payments today, right, this just shows, this just shows the percentage.

Three out of every four households are using that stimulus money to pay household expenses. There’s some that are saving it, there are some that are paying down debt, but the vast majority are using it for food, for utilities and for household supplies. So imagine what happens if that doesn’t exist.

In our state, the state of Nevada has received almost 19 billion dollars in stimulus finding, 19 billion dollars overall in stimulus funding, and that is a huge amount of money to pour in to our economy overall. And how is Nevada households using that money? 77% of them are using it for food and utilities and household supplies.  So although the some of us may have some savings and maybe even didn’t get a stimulus payment, or maybe used it for another person those folks down there at the bottom that are saying they are using it for recreation, marginally irresponsible, by the way, but using it for recreation, this is what we have to understand.

We are a state of three million people, or a community of two point seven million people and there are a lot of people who are paycheck to paycheck depending of unemployment insurance or stimulus payment overall.

Funds used by Nevada households in the past seven days to meet spending needs. Regular income number one thanks goodness, it is on the top. But look at this stimulus payments are twenty one percent. Just to meet spending has been used by on out of every four households. Using unemployment insurance to make those payments. If we look at Unemployment compensation as a percentage of wages and salaries just to show you how important that unemployment insurance is to us, it is higher than any point in United States history. And we are burning through our unemployment trust fund at the fastest rate we ever have in the State of Nevada.

Alarming statistics about Las Vegas economy and how it can effect on the Las Vegas housing market

And why it all matters, here is a few things that I believe this group might find particularly interesting. Here is those who made their rental payment that is eighty two percent. But eighteen percent of households indicated that they did not make rental payments. And when asked about the next rental payment forty one percent of households in the state of Nevada indicated that they have little or no confidence about their ability to make that rental payment next month.

And among those, those minority groups, some of those who are most at risk. Overall households with children are at the highest level overall. Again, why it matters further. What about those who indicated that they didn’t make a mortgage payment last month. Twenty two percent of homeowners indicated that they didn’t make it. And I know you all are monitoring what has been sold and what has been listed and we have seen what I think is unexpected stability in the market and I think it is for a number of different reasons.

I think Cos made some comments that have been absolutely on point relative to all of this. But the underbelly what we are seeing remember there was a time we were thinking huh how are can we be building all of these housing units how are people taking out all these home equity and taking vacations and buying these boats and doing all these kind of things. How is this possible, right, I think we are looking at it now and many of us are thinking how is this possible? And I think we need to make sure that, look if the virus sort of recovers and we get through that and we get passed it then it is going to be largely a non-issue. But if it extends for a longer period of time than it is something we need to be concerned about.

Nevadans reporting food insufficiency sometimes or often in the past seven days, three hundred thousand people almost twice as much a before the pandemic. And this the one that scares me more than anything else. Those reporting that they delayed getting some of medical care over the past four weeks as the result of either fear or they were asked to stay home is almost thirty eight percent of our population? I know we delayed things like elective surgery but elective surgery becomes emergent surgery when it isn’t there. And all of the sudden we see a large reduction in heart attacks and strokes, no we are not. People just don’t start going to get help for it. Right, this is a big concern for our community overall.

That Nevada Paycheck protection program, I will not going to spend a lot of time here. Other than to say it is keeping our small businesses afloat today in the state of Nevada. If we look at the summery of the loans that existed and the number of jobs it covered in Nevada alone as the result of that program they are massive numbers of those. And we ask rent or mortgage relief owners or business owners again in the same survey we talked to you about. Are you paying your full rent? Seventeen point one percent of businesses in the state of Nevada said I am not making my rent payment today. This is hugely problematic. For those with a mortgage one out of ten are saying I did not pay mortgage payment today. Obviously this is not sustainable. Because that stimulus that is buoying or economy is going to run out. And if it runs out before we get to to the other side of Coronavirus we are going to have a big problem in the State of Nevada.

Current economic conditions

These are genuinely alarming numbers. Let’s translate the problem that renters are in from percentages.

According to a recent report by the Guinn Center, a local nonprofit, bipartisan research and policy analysis group. Some 118,000 to 142,000 Nevada households are at the risk of eviction this fall. That’s the equivalent of 272,000 to 327,000 people.

The stimulus ran out in the third week of July, and so far, the only stimulus that has passed is three to six weeks of $300 per week unemployment stimulus. Things are so bad that the president and Nevada governor have extended the moratorium of evections to avoid a mess eviction. But eviction in Las Vegas is judicial, and a judge has to sign the eviction order. There are not enough judges to process thousands of potential eviction orders promptly.

We do not care about multibillion-dollar companies that own thousands of homes in Las Vegas Metro. But many of these rental units are owned by small investors like many of our investor clients. They use the rental income to pay their mortgage and help family finances. The eviction moratorium has hurt our investors badly since they are responsible for all of the property expenses since they have lost a significant percentage of their revenue since April. Some of these investors will list their units, thus growing the number of active listings.

Additionally, we have started to see retail vacancies in some highly sought locations in the metro. Other businesses are hanging on for their life and will be out of business in the following months. Many of these business owners are homeowners and have to find a job in unfavorable economic conditions and pay the mortgage again when the mortgage forbearance runs out. Many will list their home.

The future of the Las Vegas housing market

The argument over the future of the Las Vegas housing market revolves around how much the active listing will increase in the following months. We believe there will be a significant spike in the number of listings as we get closer to the end of the foreclosure moratorium, reversing the price hicks and leading to price cuts.

Lastly, just yesterday we learned that the problem solvers caucus in Congress are publicizing their plan for additional stimulus which can affect what will happen in the future months. We wish all the best but think that much damage is already done.

CoreLogic, which is the tech company that provides our Las Vegas MLS has predicted that home prices in Las Vegas will come down by about 7.3% in the next twelve months, and we concur.

Now you know why we are pessimistic about the future of the Las Vegas housing market despite the recent record prices.

If you are in the market to buy a home or condo, wait for better pricing. If you -plan to sell your home or condo, this is probably going to be the best time in the next couple of years. Call us at 702-478-7800 to start the process.

Now you know why we are pessimistic about the future of the Las Vegas housing market despite the recent record prices.

If you liked this video, please like and share. You can subscribe to receive future videos on our YouTube channel, LasVegas4us. This is Karen Saberzadeh with The Saber Team wishing you a great day.

July 2020 Las Vegas housing market

In this video, we discuss the Las Vegas real estate market statistics for July 2020. The impact of COVID-19 on home prices has been minimal so far, and why it shouldn’t be. The mortgage forbearance and eviction moratorium, in addition to unemployment stimulus, are masking the economic troubles.

We will talk about why news headlines about home prices set a record in June are dead wrong. While there is no danger of a tsunami of foreclosures for more than a year, what is the short term threat to home pricing and home? And lastly, what should homebuyers and sellers do now.

Irrational Exuberance about Las Vegas Housing Market July 2020

Las Vegas real estate market seven weeks after Coronavirus

Las Vegas housing market was on the way to near double-digit appreciation. And then COVID-19 invaded Nevada. We will show how Coronavirus has negatively affected the market. And what Las Vegas home buyers and sellers need to do in this market to protect their interest. Even though the sales numbers weren’t bad in March, it cooled down significantly in April.

In this video, we will show you what happened and, more importantly, what buyers and sellers should do in this market to protect their interest.

Las Vegas Real Estate Market Seven Weeks after Coronavirus

Prediction & overview of Las Vegas real estate market 2018, video:

In Prediction & overview of Las Vegas real estate market 2018, video we talk about how the shortage of active listing inventories for homes, condos, and townhomes has gotten worse over time, leading to double-digit increases in their median prices. When it comes to Las Vegas condos for sale, the median price gain of 34.9% is beyond belief.

In this blog post, we make a prediction on what will happen to Las Vegas housing market in 2018.

Overview of Las Vegas high-rise condo market in 2018, video:

In the overview of Las Vegas high-rise condo market in 2018, video we will show that even though the median price of high-rise condos has rebounded from the significant $44,000 drop in median price of 2016 to finish 2017 at $340,000, the main reason for the rebound is the big reduction in the active listing inventory and not increasing sales or the Raiders moving here.

It should be mentioned that the median price of Las Vegas high rise condos at the end of 2017 is only 3% higher than the same in 2014, but should go up by more than 5% in 2018.

Rocketing prices in a strange Las Vegas real estate market-Video: While the number of home and condo listings in the late spring should rise appreciably from January, the exact opposite has happened this year and active listings have dropped by 35%-50% since then. At the same time demand has gone up significantly.  We explain how long we expect these price hikes that are based on an abnormal market to go on because at least when single-family homes are concerned, affordability becomes an issue.

Buying Las Vegas homes in July could cost 10% more than now-video: In this video, we warned buyers that waiting to buy a home that is priced below the FHA loan limit in July 2017 will cost at least 10% more than January and advised them to buy before March.

We not only talked about when price appreciation will come but by how much. Our prediction was right and if someone gets an offer accepted at 10% higher than 2016 for a house that is priced less than $287,500 they have done well.

Overview of Las Vegas real estate market in 2017-Video: We were the first and only to predict at least a 10% price gain for less expensive homes, condos, and townhomes. We did this video in December when we thought that we would get more active listings inventory that not only didn’t come, they were significantly reduced by summer while demand escalated.

We also discuss why median price gains do not apply to all price ranges equally. The days on the market before going under contract for luxury homes is 3-4 times that of cheaper homes, and competition among buyers is not as intense. So it is a great mistake to raise the price of a luxury home by the same percentage as the median price gain. Listing agents who raise asking list price by the same amount as median price gain fail to sell their listings due to incorrect asking list price because they have ignored this fact.

GLVAR doesn’t publish any high-rise condo market updates so ours is unique to this site and can’t be found anywhere else.

Overview of Las Vegas high-rise condo market in 2017-Video: The only formal high-rise condo market report available online. We take a look at the median price of all units sold in high rise condo towers since the recovery of 2011. Contrary to what you read in news articles and other Realtor sites, we prove that our high rise condo market is a buyer’s market.

In the subsequent video, we look at the median price of all units sold in each individual tower since recovery and margins are wide, from 76.2% median price appreciation for Metropolis, to 11.3% for a couple of condo hotels.

How is the market affecting buyers and sellers-Video? In this, we talk about how the low inventory of active listings and escalating prices that are affecting buyers and sellers. If you plan to buy or sell, watch this video.

Las Vegas housing will not see any price gains for now-video: in this video, we show that median prices of single-family homes escalate in February through July and stay flat and even going down a bit in late November or December before escalating in February again.

Archive:

For older posts please click the blog category, you will find all of our Las Vegas housing market reports there.

Las Vegas Housing Market Updates was last modified: June 19th, 2021 by masouds