LAS VEGAS, NV – Spring is here, and if March figures are any indication, the upcoming months leading into the summer season are sure to continue the upward trend of availability – or lack thereof – of homes in the Las Vegas real estate market.
Southern Nevada’s supply of available homes has been shrinking for months now, going hand-in-hand with a steady increase in prices as options continue to dry up for prospective homeowners in the region. According to recently-released statistics, approximately 11,000 single-family homes were available on the market at the tail-end of March 2017, which represents a decrease of 17 percent over the same point in 2016. Meanwhile, sales of available homes on the market have increased nine percent this past March compared to 12 months ago, resulting in a highly-competitive marketplace for both buyers and sellers, with homes on the average selling at the fastest rate since official tracking begun in 2010.
A community experiencing growth always represents an attractive prospect for people looking for a fresh start, hence the recent influx of transplants from other areas of the country and the subsequent reduction in the amount of housing options for them as dwellings are gobbled up. As an example of how fast homes are selling in the region, your average single-family dwelling would typically go under contract in 60 days one year ago; today, that number has gone down to 49 days and continues to shrink.
As with a growth in demand comes growth in prices; the median price of a single-family home sold in the Las Vegas area has jumped up 7.5 percent in March 2017 from one year ago, with the average price clocking in at approximately $273,000.
According to real estate professionals, there’s plenty of buyers out there, but fewer and fewer homes to accommodate them; this, reports indicate, are a result of economic improvements in Nevada as a whole and Las Vegas in particular, with new businesses, attractions and even sporting teams (in the form of the Oakland Raiders NFL team) setting up shop in the area, and with them are coming jobs for local area residents.
However, with Vegas’ growing reputation as a real estate market on the rise come complications as well, with homeowners looking to sell believing they are sitting on a gold mine and demanding top dollar for their property; experts report that if prices were lowered closer to an accurate fair-market value – as opposed to prices inflated by speculative market growth and a recent spike in demand – that sales would be even more brisk. But as a territory hit especially hard by the real estate bubble burst several years ago, sellers looking to cash in on a market that is finally booming is just a reality that cannot be denied.
Another factor that is eating into the total number of homes available to buyers in the Las Vegas area are due to investors that purchased a large number of homes, only to turn around and offer them as rental-only properties to tourists and vacationers; as of March 2017, few of those investors are looking to sell those homes, which again drives up demand for the remaining properties on the market.
Overall, however, March 2017 has continued the trend of a shrinking real estate market and demand (and, as a result, prices) for property in Southern Nevada with no signs of things slowly down.