In the second quarter the Las Vegas and Henderson housing market showed a significant drop in home sale transactions but ended with a jump in open transactions which has carried into the third quarter. But that increase isn’t fueled merely by the pent-up demand of consumers who missed out on the market. Open volume is a home sale transaction where a contract has been signed, but the sale hasn’t closed and surged 21 percent in June and 30 percent in July.
Low mortgage rates are helping consumers buy more homes, but low inventory in the Las Vegas Valley is driving up the price. Inventory is down by 15% compared to a year ago when inventory was already diminishing.
We are seeing people willing to pay more for a home because of societal shifts driven by COVID-19. We are seeing increased demand for suburb living and increased rotation within suburbs from existing homeowners, due to changing needs like more outdoor space or the need for a home office.
While the varied reasons for the hot market are a cause for short-term celebration after a static market in the early days of the COVID-19 pandemic, we are not running away with excitement yet. There are macroeconomic concerns — the country saw the biggest quarterly domestic product drop in history even as unemployment numbers continue to be concerning — and tons of lingering uncertainty around COVID-19.
Over the past 2 months we have seen an increased interest of consumers wanting to move out of California, Washington, Portland and New York over the unrest in these areas. While we have no crystal ball and no matter what analysts are stating about nationwide real estate numbers, we feel confident buying a new home in the Las Vegas Valley is a great investment.
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