Despite the pandemic, our market heated up nicely during 2020.
What’s the story of our 2020 Las Vegas real estate market?
Obviously, we saw a huge change, but to truly answer that question we must start at the beginning of the year, before COVID hit, with some January numbers. The average interest rate was 3.7%, the median days on market was 34 days, the median home price was $305,000, and the average price per square foot was $168.
If we skip forward to last December, interest rates dropped even further (28% to be exact) to 2.67%. This really increased the affordability of most buyers and drove our market, so much so that the median days on market dropped to 16 days, the median home price increased to $345,000, and the average price per square foot increased $183.
In total, there were 31,191 single-family home sales in the Las Vegas market (including Henderson). The market really heated up during the pandemic, mostly due to low interest rates and high demand for homes—especially from people relocating from California. As of the recording of this video, there are 3,100 homes for sale, and we’re averaging about 2,600 sales per month. This equates to a 1.25-month supply of inventory.
What do I expect from the rest of 2021? I expect the market to continue to be hot, with inventory staying low and demand staying high. Basically, it’s going to be a crazy seller’s market. Sellers will be able to sell their homes pretty easily; it’s only a matter of getting the best terms and price. If you’re thinking of buying a home in 2021, it’s going to be a competitive market. Since rates are so low and so many people will want to upsize, it’s important for you to work with an experienced agent who knows how to navigate current market conditions.
If you’d like to talk more about why I think 2021 will be a very good year for our market or you’re thinking of buying or selling soon, don’t hesitate to reach out to me. I’d love to speak with you.