Las Vegas real estate market slowed, then accelerated in the past year
The Las Vegas real estate market has been on a booming path for over a year as buyers grab homes, prices continue to hit all-time highs, and sellers come up with a plethora of offers.
Well, an almost uninterrupted hot streak, as a report showed again this week.
The median selling price of previously owned single-family homes – the bulk of the market – was $ 405,000 last month, unchanged from the record set in July, but up nearly 21% from August of last month. last year, the Las Vegas Realtors trade association reported.
Prices kept climbing for months, setting records at every step. According to the association, the price streak took “a momentary pause” in August as the market “prepares for its final surge before the expected downturn in the holidays begins.”
It was not the first time that home values have flattened since the market started to accelerate last year. The median home price in Las Vegas was the same from November to January, now priced at $ 345,000, a record high at the time.
In addition, sales fell at home construction sites and existing neighborhoods in southern Nevada during the normally busy spring buying season, amid a nationwide pullback.
Of course, there is no way to predict where the market is going, including when, or how, the current frenzy will end. Plus, the housing markets are always subject to ups and downs, especially in Las Vegas.
But in recent months, there have been signs of the southern Nevada market slowing down, as prices resumed their advance and sales totals reversed their fall.
Perhaps the main reason: the main fuel in the market, cheap money, keeps flowing.
Lowest mortgage rates still hover at historically low levels, allowing buyers to lock in lower monthly payments and stretch their budgets. In the United States, borrowing costs have come down in recent months after rising briefly at the start of the year, with the 30-year average mortgage rate standing at 2.84% in August, down from 3 .08% in March, according to mortgage finance giant Freddie. Mac.
Of course, just because you can borrow at low rates doesn’t mean you can still afford the house payments. The buying frenzy that swept through Las Vegas and the rest of the country created an extreme seller’s market, pushing prices higher as owners cashed in the frenzy.
In total, southern Nevada homes are selling nearly 42% above their long-term price trends, making it the ninth most overvalued market in the country, according to a report by professors at Florida Atlantic University. and Florida International University.
“Even with mortgage interest rates near historic lows, it is still difficult for some working-class buyers and families to afford a home,” Las Vegas Realtors President Aldo Martinez said in A press release.
So what will follow last month’s price break?
We will find out soon enough.