Today I have a quick update on where the Las Vegas real estate market is and where it’s headed in the future. The number of homes currently for sale in the entire Las Vegas Valley is just 3,310. That equates to approximately a 2.4-months’ supply of homes. Last year at this time, we had 3.5 months of available inventory. That’s a 31.4% drop in supply.
A balanced market has approximately six months of supply, and anything below that is a seller’s market. With 2.4 months, we’re clearly in a seller’s market.
Due to low interest rates, a significant increase in population, and more people working from home, our median days on market (or the average time it takes a home to sell) has been greatly affected. Right now, homes are selling in just an average of 19 days, down from 28 at this time last year.
Many home builders that we’re visiting with have a very limited supply of homes as well. In most cases, you’ll either have to buy dirt or wait to buy dirt. This pushes the building process out by up to nine months. The good news is that you can still choose all of your options, features, and more when you build from scratch. The downside is that lot premiums have gone up due to the high demand. These prices can range anywhere from $4,000 up to $500,000.
“Many new construction buyers are waiting to buy dirt at this point.”
Finally, I want to talk about the median home prices for homes over 2,500 square feet. Right now, that median price is $528,000, up 6.7% from the $495,000 median price we had last year.
With interest rates staying low and population increasing, I think our market will remain strong in 2021 and supply will remain low.
If you’re thinking about moving or just have any questions about the Las Vegas market, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.
