Your Monthly Real Estate Market Update for July, 2023
The median price for a single family home in the Las Vegas Valley went up $6,000 in July, going from $444,000 the previous month to $450,000. This matches the first time since last July that the median price has been the same or higher year over year, after experiencing a small price decrease from August 2022 to December 2022. The average sales price is also up year over year, from $549,950 last month to $569,962 in July 2023 (a 4.6% increase from last year).
Home prices are continuing to rise (although much more steadily than in 2021/2020) despite total sales being down, largely due to the fact that the inventory of homes on the resale market remains very low, currently there are only about 4,000 single family homes for sale in the Vegas Valley and only two months supply based on the current sales. A "normal" market is between 5 to 6 months worth of inventory, which would bring price increases to a halt, but there's no current signs of the price increases slowing in the near future.
Many people had feared the higher interest rates of the past 12 months would cause a crash in the Real Estate Market, but while they slowed the market last year and initially shocked some Sellers into dropping prices, the higher interest rates are also keeping some potential sellers from listing their homes this year and actually is contributing to the low inventory and ensuing price increases. Las Vegas remains a very strong relocation city, as people from California, Washington, Oregon and other much higher priced states continue to move here and eat up the little bit of inventory that remains.
Days on market, list price to sales price ratio, pending sales and new listings all moved into more Seller friendly ranges in July, showing that the price increases from recent months, while at a slower and more normal pace, is likely to continue.
