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Pandemic Has Little Impact on the Las Vegas Real Estate Market
Dated: August 4 2020
I've been watching the statistics of Clark County and the Las Vegas Real Estate Market closely since March. Now, with July's numbers in and shown below, it's clear that the immediate Impact of Covid-19 on the Las Vegas Real Estate market was only felt from March to April.
"The Real Estate market has only gotten better since April and prices keep rising. "
In March, the city shut down, like Many other cities before and after in response to the pandemic. Our market analysis comparing March to April showed a 2% reduction in value and a decrease in number of sales overall. This made perfect sense because of the uncertainty of the market. What started to make less sense and is so interesting is that the Real Estate market has only gotten better since April and prices keep rising. Covid-19 had an immediate Impact that then subsided quickly.
The fact remains that low inventory continues to raise prices and move sales. Inventory has been low for years and buyers were competitive prior to March. In March, Covid-19 caused the number of homes for sale to go down as Sellers worried about their health, safety, and the market. Inventory decreasing even further in turn made the demand greater.
“In April the median sales price of a property was $292,000. In July it was $309,900. [...] In other words, our market is appreciating as if there is no pandemic.”
In simple supply and demand terms, if supply goes down and demand remains the same or increases, prices will go up. That’s exactly what has happened since April all the way through July. In April the median sales price of a property was $292,000. In July it was $309,900. That’s a 6.15% appreciation since Covid-19 shut down the Las Vegas economy. That’s an average of 2.05% a month in appreciation. That’s more appreciation than the same time period in the Summer of 2019. If you adjust to prior to the pandemic Impact and use the sales prices in March, it’s roughly the same. In other words, our market is appreciating as if there is no pandemic, with the exception of a little dip for one month from March to April.
It would seem that interest rates at an all-time low, and inventory remaining low, have continued to drive our market strength. We prefer to stick to the data rather than make predictions. The data shows that Las Vegas is a good market, right now, for both buyers and sellers. A low inventory and rising prices typically indicates a Seller’s market. That much is obvious, and it is a strong market for selling a home. However, it is not a market solely benefiting the seller because with interest rates averaging around 2.75%, it’s just as much an opportunity for buyers right now.
Ron Ventura is the Broker throughout the State of Nevada for Allison James Estates and Homes (AJI), one of the nation’s top full service residential real estate brokerage firms. Ron is a Las Vegas-n....
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