Dissecting the Las Vegas Housing Market Amid the Pandemic

–By Gabriella Loessin

Against all odds, Las Vegas’ housing market has seemed to somehow rise during this pandemic. With a shortage of inventory, pent up demand for homes, and record low interest rates, Vegas real estate is… on fire!

A low supply of inventory combined with a plethora of buyers has driven sales prices to record highs. Skky Archuleta, a local Realtor on Team Carver at Berkshire Hathaway Home Services, says the main motivation for sellers is the ratio of buyers versus sellers in the market right now. “Our inventory is still low, there are more buyers than sellers. It’s supply and demand! Sellers are receiving top value for their homes and selling quickly,” says Archuleta.

According to the MLS, the average sales price for Clark County in July 2020 was $338,537.00. A year ago, that number was just $320,257.00. Meaning, if you bought your house a year ago or more, you are likely to have gained a good amount of home equity for yourself and that does not even take into consideration any upgrades or additions you may have undergone.

Las Vegas saw a tremendous amount of people migrate here pre-pandemic, but will this trend continue? “I do see it continuing; the cost and quality of living in Las Vegas is of the top in the nation,” adds Archuleta.

It’s obvious the low cost of living, no state income tax, and addition of major sports teams, on top of everything else Vegas has to offer, are great reasons for people to settle here. But, more importantly, the current pandemic has encouraged major corporations in expensive metropolis cities to move their operations into fully remote settings allowing their employees to move wherever is more affordable. This trend alone, could cause a huge influx of people to migrate here from our neighboring states of California, Arizona, and beyond.

A major spark in the housing market has been the introduction of historically low interest rates. In today’s market, great credit and a sizeable down payment could get you an interest rate in the 2’s! Rates have never hit the 2% range. Until now, the record low was 3.31% in November of 2012.
There is no way of knowing how long rates will remain this low, but it’s not going to last forever. If you’re considering buying or refinancing, now is the time to pull the trigger. If you have been holding off on buying, it’s better to pony up and win the house now; values will continue to rise. As with refinancing, pushing it off will do more harm than good; think about the amount of money you’re potentially losing per month just by waiting for the “right time”.

Buyers are flooding the market where inventory is slim. This is the definition of a seller’s market. Archuleta concurs, “we are continuing to see sellers receive multiple offers and showings in the first 7 days on the market. If your home is priced well, it will sell quickly. COVID has forced all of us to take a look at our homes and realize it either works for us or doesn’t! In addition to the influx of people moving to Las Vegas from more populated cities like San Francisco or New York City, locals are upsizing, downsizing, and moving to a new home to better fit their situations.”

Low rates and accumulated home equity are making it much easier on people wanting to sell and move quickly. Timing and location are everything in real estate… don’t be late to the party.

Skyy Archuleta, Team Carver – Berkshire Hathaway Home Services Nevada Properties, Skyya@bhhsnv.com, 702-715-9802