The Las Vegas real estate market is in a hot phase, although property prices in other cities have risen even faster, a new report shows.
Real estate prices in southern Nevada rose by 6.8 percent year-on-year in November and were thus below the national rate of 9.5 percent. This is evident from the S&P CoreLogic Case-Shiller Index published by S&P Dow Jones Indices on Tuesday.
Las Vegas prices rose the slowest of the 19 markets reported. Phoenix topped the chart for the 18th time in a row with price growth of 13.8 percent.
The coronavirus pandemic has kept people away from home and from the crowds for fear of infection and has destroyed the tourism industry, the backbone of Las Vegas’ casino-heavy economy. Despite the huge loss of jobs, property prices in Las Vegas hit record highs several times over the past year.
Record-low mortgage rates have provided much of the fuel by allowing home hunters – or at least those who can still afford to buy a place to buy – lower monthly payments and stretching their budgets.
Buoyed by the low cost of borrowing, “a wave of eager potential homebuyers poured into the US market in November,” adding “to the fierce home competition since late spring,” said Matthew Speakman, an economist at Listing Site Zillow, in one Explanation.
Homes sold fast, prices rose at the fastest pace in years, and even as the coronavirus outbreak accelerated across the country, “this fierce competition in the market has shown little or no sign of cooling” and will do so in the near future probably won’t do that, he added.
On site, the real estate market ended in 2020 with an increase in sales. Buyers picked up more than 3,300 single-family homes in the resale market last month, up 26.7 percent from December 2019, the Las Vegas Realtors trade association reported.
The median sales price for such homes last month was $ 345,000, unchanged from November’s all-time high and 10.2 percent year over year.
Overall, Southern Nevadans have grappled with job losses, eviction and foreclosure uncertainties, changes in almost every area of daily life, and fears for the health of themselves and loved ones, noted Andrew Smith, president of Home Builders Research, in a report Week.
“Despite all of this,” he added, “the local real estate market has continued to thrive since 2021 began.”
Contact Eli Segall at [email protected] or 702-383-0342. Follow @eli_segall on Twitter.