Housing Becoming More Affordable while Prices Go Up

Something I heard this week,

"Homes are more affordable now than they were a year ago."

How can that be? Prices have been going up so quickly!

Then they explained...

For this example, 

we will use the Median Home Price in Henderson.

This week it is  $470,000

One year ago it was  $440,000

 

And Interest Rates this week are at 2.71%

One year ago they were 3.73 %

 

 

When we calculate $470,000 for 30 years at 2.71%

we have a payment of $1,909 / month

When we calculate $440,000 for 30 years at 3.73%

we have a payment of $2,033 / month

 (assuming Taxes, Insurance and Association Fee's are all the same)

Buying a median home this year will cost $124 / month LESS.

A savings of $1,488 a year.

 

Another Interesting Factoid I heard is that,

The Average Weekly Earnings has Risen over the past year

from $972 in Nov 2019 to $1,029 in Nov 2020

This equates to $57 more a week, $228 a month 

or an additional $2,964 for the year.

 

All during a Pandemic...?

These are two major reasons the Housing Market is So Strong.

 

The Las Vegas & National Real Estate Markets

As always the question is,

What is happening with the Las Vegas Real Estate Market?

First let's look at the National Real Estate Market...

 

This Top Graph shows a 5 Year Seasonal Trend in Median Price 

and it is definitely Moving Up 

This next graph shows a 5 Year Trend of Available Inventory.

It is definitely down.

  Interest Rates still at Record Lows making Homes more affordable for Buyers.

This has also triggered a Refinance Boom saving families hundreds a month.

And the Mortgage Payment Forbearance has people staying where they are.

 

New Home Builders Confidence is at an All Time High.

People moving out of Cities and in more Rural Areas are looking 

at New Construction Homes as an exciting option. 

 

In California, issues like Forest Fires, Homeless Camping in Streets, 

Riots / Looting, and a High Cost of Living are pushing people Out.

 

So that brings us to Our Local Real Estate Market.

The following 3 graphs show Henderson, Las Vegas and N Las Vegas 

All Hitting Record High Median Sales Prices. 

When will it all end? I'm not sure...

 

 

Today's Headlines...

With all the Bad News out there...

Today we wanted to show some of the email articles we have received this week.

Many go against logic and might surprise you... 

These are All National Statistics.

National Pending Home Sales

The number of Sales each month has risen for 2 consecutive months

 

National Home Prices are on the Rise

Case-Shiller Report shows Home Prices still on the Rise

 

National Home Ownership Rate 

Jumping Up despite Pandemic

 

Mortgage Interest Rates Still Dropping

We are in the middle of a Refi-Boom 

If you haven't already Refinanced your Home,

you should definitely consider it.

And remember, when you refi, you get to skip a months payment.

 

Up, Down and Back Up - Like a Roller Coaster

 Today I want to take a Closer Look at Median Home Prices 

for Henderson, Las Vegas and NLV during the Pandemic.

Up, Down and Back Up  -  Like a Roller Coaster

Back in early March when all of this first started, 

Las Vegas and Henderson were both having a Boom.

Median Prices had Shot Up to Record Highs.

Henderson was $509,888

Las Vegas was $415,000

Post - Prices Shooting Up Amidst Health Scare

Then in Late May we saw the Prices Drop 

Henderson went to $ 460,000

Las Vegas went to $ 368,950

Inventory went Way Up and Prices Down. 

Post -  Past, Present & Future ???

 This week things have changed again.

Henderson back up to $491,955

Las Vegas back up to $ 385,650

Meanwhile North Las Vegas has been on a  Slow and Steady Rise.

Until just recently they surged up to a High of $ 308,995

Governor Sisolak announced more Shut Downs on July 10th.

So what's going to happen next? We shall see...

Click HERE for Complete Market Reports

Henderson

 

Las Vegas

North Las Vegas

Click HERE for Complete Market Reports

Some "Interesting Observations"

Most Blogs we post discuss Statistics and the Cause and Affect around them.

Today I want to make some "Interesting Observations".

COVID-19 has caused us all to change in some Unique ways.

Especially how we, Live or Lives in Our Homes.

We have all spent a substantially lot more time in our Homes. 

Many of us are now Working from Home.

Some have had to become Teachers and Home School children.

For those who would go out to eat regularly, they are now Chefs.

A lot of our extra Free Time is now spent Improving our Homes.

This has caused many people to Invest in their Homes.

Home Depot and Lowe's hit record high stock prices this week.

If I had to guess, Star Nursery is probably having a great year.

There has been a National transition from people living in Cities and apartments or flats,

to wanting to be in the Suburbs with more space, more rooms and yards.

Just imagine what it must be like to live in a New York City 700 s.f. Flat 

and be told you have to stay there for 3 months or longer...

Despite Economic Uncertainty, people are still buying Homes.

Keeping home prices relatively stable.   Why...?

Historically, this is the Busiest Time of Year in Real Estate.

Interest Rates are at a Record Low. Under 3%

Many people have had a lot more Free Time than ever to shop.

Despite people having cuts in Income, they are still spending money.

And, there have been fewer things we can spend our Discretionary Income on.

No Theaters to watch Movies.

Most Restaurants have been shut down.

No Sporting events to Attend or watch in a Bar.

 Shopping Malls have been closed.

Traveling options have been limited.

The Casinos were Closed.

Many people are spending that extra Money on their Homes.

It will be interesting to see how the shut down will continue

to change our spending habits.

Past, Present & Future ??? during Pandemic

• March 5    -   1st Reported Case of COVID-19 in Nevada 
• March 12  -   Governor Sisolak Declares State of Emergency
• March 13  -   Last Day of School for Students
• March 18  -   The Las Vegas Strip is Shut Down
•            ***    Fast Forward  80 Days    ***
• June 4       -   The Las Vegas Strip is scheduled to Re-Opens

The question we get is always,

"How is this Affecting the Real Estate Market?"

The 3 Images below show Median Price and Inventories for

Henderson, Las Vegas and North Las Vegas

On Friday March 13th and then on Friday May 29th

All 3 Areas of Town had Rising Prices and Dropping Inventory.

Though they held strong until Mid April, they have since changed directions.

The Las Vegas Metropolitan Area was an Overwhelming Sellers Market,

It has now becoming more of a Buyers Market.

With Interest Rates at Historical Lows, 

Buyers should take advantage of this Short Term Opportunity.

 

Henderson

Median Home Sales Price 

on Friday March 13th was $475,000 and was Going Up 

Sales Prices Peaked in the Middle of April to $484,000

And have Since Dropped to $474,500

Inventory of Homes

on Friday March 13th was 897 and was Going Down

Inventory Hit a Low in the Middle of April of  868

And has been Growing and is now at 1,017

Las Vegas

Median Home Sales Price 

on Friday March 13th was $371,000 and was Going Up 

Sales Prices Peaked in the Middle of April to $385,000

And have Since Dropped to $382,000

Inventory of Homes

on Friday March 13th was 3,577 and was Going Down

Inventory Hit a Low in the Middle of April of  3,413

And has been Growing and is now at 3,799

North Las Vegas

Median Home Sales Price 

on Friday March 13th was $299,500 and was Going Up 

They have continued to Gradually rise to $301,500

Showing Strength in Affordable Homes.

Inventory of Homes

on Friday March 13th was 568 and was Going Down

Inventory Hit a Low in the Middle of April of  538

And has been Growing and is now at 600

The New Normal for Realtors

The Most Common Question we get is usually,

"What's going on with the Real Estate Market?"

Not lately... Now everybody asks,

"What are Realtor's doing differently when working with Buyers and Sellers?"

So here a few thing that we will now be doing.

This is Our "New Normal"

1. Less Face to Face Interactions...

The Business World had already been transitioning to E-mail and Texting.

Now we will be using Video Conferencing Tools like Zoom or Skype.

 

We also use an Electronic Signing Software called

DocuSign for Legal Signatures on Contracts and Paperwork.

This allows Our Clients to Sign Documents Using Phone or PC.

2. Keeping Our Distance...

No Shaking Hands or Hugging Friends / Clients. 

Driving in Separate Vehicles when Viewing Listings.

3. Use Protection...

We will be Supplying Masks and Gloves for Our Listings 

and to Our Clients when we Show Properties.

People who are Immune Compromised should also where 

Goggles and use Sanitizer after each Viewing.

4. New Marketing Technologies...

We are Using a 360' Virtual Camera for All of Our Listings.

High Quality High Definition Photo's are a Must.

Sharing Photo's and Videos on Social Media.

Each Listing will have a Designated Website.

Here are some examples of the Marketing Tools we are using.

https://417HoneyBrushAvenue.utour.me

We are working to keep up with the changing times. 

As always, if you have questions, please reach out to us!

Prices Shooting Up Amidst Health Scare

 The Las Vegas Real Estate Market is Changing Quickly. 

The graphs below get sent to out weekly and this week I was Shocked to see Prices Shoot Up. 

Even Amidst the Coronavirus "scare",  

Buyers are Pushing Home Prices to New Highs. 

Why? 

Interest Rates are at All Time Lows 

Falling Inventory Levels 

The Vegas Economy is Strong 

The Seasonal Spring Surge. 

The Big question is, 

Will the Coronavirus  have an affect on our Market? 

I'm sure it will.  To what degree remains to be seen. 

In the meanwhile, Buyers should take advantage of Low Rates  

and Potential Lowering of Prices due to Economic Uncertainty  

caused by the Health Scare.

Looking Back at 2019 and Forward to 2020

As Always, the Big Question is,

"What's going on with the Real Estate Market?"

Before we Look ahead to 2020, let's take a look at how we did in 2019.

Or as I joke in saying, "A 2020 Hind-Site"  

 

For the Year 2019, we had a Median of 6% and an Average of 7 % Equity Growth.

Not Bad... FYI, Condos did even better than that.

 In 2018 Equity Growth was around 9% and back in 2017 it was over 12%.

So the Growth has been good but is now slowing down.

Now let's look ahead to 2020

 I could write about all the Construction Projects, Casino Resorts 

and Conventions feeding our Las Vegas Economy, but we all know about all of that.

But even with all that's going on, I don't see Home Values Going up more than 5-6%

Las Vegas wages will only go up so much, creating an Affordability Ceiling,

which is getting close to being Maxed Out.

What will most likely Push the Market is the Rising Rents.

There have been several articles in the LVRJ about how Large Corporations 

are Investing in Apartments because of the High Demand and Profits.

Las Vegas Home Ownership Rate is around 58% 

Down from a high of 63% in 2005 but up from the low of 50% after the crash.

These numbers are well below the National Average of 65%

People need to Stop wasting Money Renting and Invest in Their Future.