Las Vegas Attracts Newcomers
Las Vegas Snapshot
It’s impossible to predict the future, but here’s a look at where the real estate market stands at the beginning of 2020.
Existing Home Sales Looking Up. 342 more resales were sold in January 2020 than in January 2019. Total January resales were 2,814 compared to January 2019 total resales of 2,472. This is a 14% increase.
Existing home sales increased in 2019.¹
- Explained: Buyers took advantage of low interest rates and affordable prices, leading to more homes being sold.
- Bigger Picture: It’s a good time for sellers to sell, as homes sell in about 30 days.
Home Prices Continue to Rise Modestly
Home prices crept up slowly year-over-year in 2019.²
The average resale home price is $327,289 as of January 2020.
- Explained: Inventory is still tight, contributing to a steady increase in prices.
- Bigger Picture: Despite this steady increase, historically low mortgage rates make the monthly payment more affordable. First-Time Buyers Toss Their Hats in the Ring
First-time buyers comprised 33% of all home buyers.³
- Explained: Many older millennials (ages 29 to 38) are getting into the market.³
- Bigger Picture: Low rates make a monthly mortgage more appealing than the monthly rent, encouraging young people to purchase a home and build equity.
The market is always changing — give me a call for a list of available homes that meet your criteria and your location preferences.
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Around the World—2020 Growth Is Projected to Be 3.4%
2005 versus 2019
Changing Times, Changing Markets
- At the end of 2019, the U.S. jobless claims were at a 50-year low.
- When adjusted for inflation, today’s home prices are lower than those in 2006 that contributed to the crash.
- Subprime or nonprime loans (granted to borrowers unable to qualify for conventional mortgages) only made up a small percentage of loans in the past five years, compared to 20% in 2006.
- Stricter lending standards reduce the likelihood of borrowers defaulting on their mortgages.
- Homeowners are more cautious, choosing to retain equity in their homes instead of borrowing against them.
Las Vegas Has More Labor Force Diversity to Enhance Its Future Growth Potential
Don’t hesitate to call me with your questions on the state of the real estate market! I’m honored to share more market updates and serve all of your buying and selling needs in the new year.
Source: ¹National Association of REALTORS® Existing-Home Sales Data, October 2019. ²CoreLogic Home Price Index Report, October 2019. ³NAR 2019 Home Buyers and Sellers Generational Trends Report. ⁴U.S. Department of Labor, Bureau of Labor Statistics, 2019. ⁵Seeking Alpha, “We’re Definitely Not in a Housing Bubble,” August 2017. ⁶Invest Four More, “When Will There Be Another Housing Market Crash? ” September 2019. ⁷U.S. News, “Your Guide to the Housing Market,” September 2019. ⁸The Mortgage Reports, “Report: Home Equity Increases, but Borrowing Doesn’t,” July 2019.
