January 2021 Las Vegas Real Estate Market Report
Happy New Year and Happy 2021!
As we look at our Las Vegas area Real Estate Market, let’s celebrate the new year and correlate all things ‘21.
The New Year is always near and dear to my heart, because on January 1 of 2019, I committed to opening my brokerage Elite Home Finders.
It is because of great people like you who have contributed to our success.
Over the past 2 years, Elite Home Finders has been honored to help over 100 Families reach their real estate goals by negotiating over $21 Million + $3 Million in real estate sales.
Ok, Ok, It’s over $24 Million… but how perfect would it have been if it was $21 Million? Am I right?
We thank you for your trust and look forward to helping you in ‘21!
Here’s what you need to know as we start our new year as a Las Vegas area homeowner.
21 Jump Street
Let’s take a look at how 2020 played out in regards to Median Sold Price.
We started out very consistent with most years.
January 2020’s Median Sold Price was $305,000, actually down from December 2019’s Median Sold Price of $312,990.
We typically see many more homes hit the market in any January vs any December, which usually brings Median Sold Price down slightly … when inventory outweighs demand, pricing suffers.
But not to worry, February made up any ground we lost in January.
We had a very strong February and had already laid the groundwork for a strong March by the time we received news that our city would shut down approximately Mid-March … which brought forth April’s anomaly in Median Sold Price.
Even during the shutdown and amid a pandemic, buyers were relentless, and were ready to move forward.
However, Sellers were a bit more hesitant to put their home on the market, which led to declining inventory levels.
From June through December 2020, we experienced low inventory and high buyer demand, resulting in ever-increasing Median Sold Prices.
Dare I make predictions for next month?
I’m in the front lines of real estate every day so I can usually start to see trends in the making.
We will see how the month plays out, but from what I’m seeing out there, I’d expect something different than a normal January decline in Median Sold Price; perhaps an incline?
Let’s just say this … “We’d better be ready to, be ready to … Jump! 21 Jump Street!”
You are welcome to reminisce and sing along to the 21 Jump Street Theme song HERE.
"Level of Concern" by 21 Pilots
Panic on the brain, world has gone insane
Things are starting to get heavy, mmmm
'Cause I told you my level of concern
But you walked by like you never heard
Take a listen and watch the video HERE.
My previous and current level of concern for our low inventory is still something to note.
Looking at the chart below, the bright blue line shows actual Inventory Levels this past year, while the light blue line shows the trendline.
And yeah, we’ve been trending downward.
In fact, just in the last three months, we’ve seen our inventory levels down to 1.4 Months, down again to 1.2 Months, and now … 1.0 Months!
That doesn’t even grammatically make sense. The term itself is “Months on Hand” -- yes, plural.
We are literally at 1 Month on Hand!!
This month, we added 2,407 New Listings, which is GREAT because it is a 20.3% increase from last month.
But, the reason our inventory levels still decreased is that we sold more units than we added.
We added 2,407 units and sold 3,305 units.
As we move into January, we usually see many new listings hit the market, and let’s hope that’s true for this January as well.
So far this January is on pace to add approximately 2,500 homes to market.
And, looking at our Pending Sales so far, we’re on pace to close approximately 3,500 this January.
Wow! We may even see lower Inventory Levels next month.
Let’s do our part to keep our market healthy and moving forward.
If you’ve been considering selling, let’s chat and figure out the best game plan for your situation.
Other Significant 21’s
I’d be doing you a disservice if I didn’t mention the phenomenal year our Luxury Market had in 2020.
The Luxury Market was more impactful on our overall sales than normal, largely contributing to the increase in our Median Sold Price.
I broke the Luxury Market into two segments: (1) $650K to $999,999 and (2) $1M+.
The $650K to $1M segment sold 17% (2,251) more units this year than last year, accounting for nearly 43% more total volume sold.
That’s an increase from $8.3B to nearly $12B year over year!
The $1M+ segment sold 23.5% (1,489) more units than last year, accounting for nearly 25% more total volume sold.
That’s an increase from $11.4B to $14.2B year over year! And yes, that’s a “B.”
That’s by far the best year of all time for our Luxury Market, which reminds me of the best band of all time.
No, not Led Zeppelin.
The best band of all time is clearly Green Day, with their song, “21 Guns!”
Ok, ok, maybe not THE BEST band of all time, but certainly MY FAVORITE band of all time.
Also, in light of our 21 theme, I really wanted to tie in the movie 21.
You know the one where the MIT College students counted cards, made beaucoup bucks while having the time of their life in Vegas?
And then, they got all their winnings taken away from them.
And then, kind of earned some of it back, but overall just learned a nice life lesson.
Well, I couldn’t find ANY correlation to that storyline when talking about our Real Estate Market.
Real Estate Market Highlights
Single-Family Home Stats
2020 vs 2019
YoY = Year over Year
Median Sold Price
Steady and even to last month, we are finishing 2020 at our highest Sold Price to date.
Number of New Listings
↑ 20.3% YoY
Even though we’re seeing 20% more homes on the market from this time last year, we are not keeping pace with Buyer Demand.
Number of Single-Family Homes Sold
For the past 2 months, we’ve seen a 26% increase from last year in the Number of Homes Sold. Buyer Demand is strong in our Las Vegas Area.
Months on Hand / Months of Inventory
↓ 53.8% YoY
We’ve dropped to a singular Month on Hand. Now is the time to sell.
Time on Market for Units Sold
0-30 days = 66.9%
31-60 days = 17.4%
61-121+ = 15.7%
Nearly 85% of homes listed are selling within the first 60 days.
*The month depicted in the statistics is December 2020. January 2021 stats will be available at the beginning of February 2021