Another month. Another record. That seems to be the trend for many months. The latest: June 2021 set another record for the median sales price in Las Vegas: $395,000; a nearly 22% year-over-year increase. It’s hard to believe that just 10 years ago, the median price of a home in the valley was just under $120,000. Much has certainly changed. So, what’s in store with these record prices? Are they sustainable?
While opinions vary as to sustainability, affordability is definitely the question on the minds of many. The current price point of many homes, even with low interest rates, is making the dream of owning a home impossible. As far as sustainability, we expect more homes to start coming onto the market as homeowner’s and investors decide to cash out with substantial equity. However, many investors are also entering the market in Las Vegas, looking for properties to buy, as rents have also been increasing considerably.
As a result, while we may see some slow down with real estate prices over the coming months, there is still a shortage of inventory and plenty of buyers. Barring any significant economic changes, prices should continue to remain strong and modestly appreciate.