Las Vegas 2021 Real Estate Forecast
What is going on with the Vegas real estate market in 2021? The market is experiencing another inventory shortage crisis. In the Las Vegas valley there are currently 2319 Single Family Homes and 912 Condos and Townhomes available for sale. That puts us at less than a 1 month supply of homes. This inventory level is now on par with what we had in April 2004. You remember the year appreciated 52%?! Well, don't expect that same level of appreciation in 2021.
What is the difference between 2004 and 2021 and why are we not going to go up 50% or more? In 2004 the valley saw 7,500 resale homes selling a month and the valley homebuilders slapped together more than 35,000 homes. Currently, there are only 2500-3300 homes selling a month, and the Southern Nevada Home Builders Association predicts that there will be about 11,000 homes built this year, similar to last year. That is a huge difference. More than twice the number of sales were happening, and therefore twice the appraisals, and twice the opportunity for the values to notch up.
Interest rates are at all time lows, and that may be the only thing helping buyers afford the new high median prices. It's cheaper to buy a home today than it was in 2004. Rates should remain relatively low into 2023. So, the big issue, if your a buyer, is choice. There isn't much choice out there. The good news is you have some time. Not a lot of time, but some. So, save up for that down payment, take your time searching for the best home that fits your families needs, and in the meantime, give me a call. I can help you prepare for the biggest financial decision of your life.
Jacob Mitro -Life Realty District
702-285-3444 / s.0051190