Las Vegas Market Update
Published On: July 11, 2020 Posted by: Millie Fine
The effects of the COVID-19 pandemic on Las Vegas Real Estate have been substantial, but not catastrophic, at this point in time. The figures below reflect all property types in all areas serviced by the Greater Las Vegas Association of Realtors. Closed sales, comparing May 2019 to May 2020 were down some 48%. Comparing June to June, they were down 18.5%. Some improvement there. Listings, comparing June 2019 to June 2020, were down 33%
Supply of homes for sale has decreased substantially. June 2019 we had a 4 month supply. June 2020 we had a 2.6 month supply. Active listings decreased 37%, again comparing June to June figures. Buyer pressure is down, but potential seller’s are even more reluctant. This has resulted in prices reaching a 14 year high, an almost an all time high (not adjusted for inflation).
A history of this market shows that the all time peak was August 2006 with a median price of $291,000. This June we were at $289,900. The low was March 2012 with a median price of $109,000. What is not accounted for in these figures is inflation. The measured inflation rate from 2006 to 2020 is 27.18%. Adjusted for inflation we would need a median price of $370,000 to achieve parity in actual dollars with August 2006.
I’m not going to predict the future of this market, short or long term. Too many variables. Hopefully the information above will give you at least some perspective as to what is happening right now and what has happened over the last 14 years in this, which has been, a very chaotic marketplace.
