The local housing market in the USA is envisioning a promising year ahead with better prospects than in January 2019. However, that is not without a slight depreciation from the advances made in December.
The most recent data on the real estate of Las Vegas gives insight into how the market is expected to behave in the course of the year. The Greater Las Vegas Association of Realtors (GLVAR) released the Housing Statistics for January 2020 covering the activity for the month with information collected through its Multiple Listing Service (MLS).
The report points out that the median price of houses sold in Southern Nevada at a total of $305,000 was up by 1.7% from January 2019 but down by 2.6% from that of December 2019.
The all-time high for Las vegas was in June 2006 for $315,000, before the recession led the sales plummeting to new lows in 2012. Since then, the local home prices have been steadily growing from their post-recession low figures, before decelerating in the last couple of years.
However, Tom Blanchard, the 2020 GLVAR President, suggests that this hike might reflect a seasonal home sales trend, as January often falls into the category of slow months. The price record might still diminish in the near future. In fact, the current rates should be higher factoring the rate of inflation, and since the other parts of the country have already caught up, the possibility of Vegas surpassing the pre-recession record is still on the horizon for 2020, says Blanchard.
These numbers seem to be in agreement with the report of Realtor.com released in December 2019, predicting that Las Vegas would be one of the markets seeing a decline in 2020, with South Nevada prices dropping by 1%. Considering that December performance comes within a few thousand dollars of the highest peak, January shows slow advance.
Meanwhile, homebuyers in Las Vegas might find these months to be a better period for landing lower rates compared to how the year ended. Sales and prices are down from December, with rising demand and shrinking supply.
GLVAR reports that only 4,906 homes for sale by owners were listed with no offers in January. This is 32.4% down from that of last year. The deals of condos and townhomes also presented the same predicament with a 16.7% drop in numbers. Blanchard foresees that 2020 will proceed a lot similar to 2019, with home prices more or less stable or progressing.
The National Association of Realtors, on the other hand, had forecasted Las Vegas as one of the top ten markets that would outperform in the next three to five years. Though the monthly comparison might show a depreciation, the future prospects have hopes for a positive turn. January sales in 2020 are up 25.2% for houses than in 2019. The pace might be slower, but there is plenty of room for growth.
The current trends exhibit anticipation for slower, and more affordable, yet competitive markets in most parts of the country. As per the country’s top economists from Zillow’s, home prices are expected to expand moderately this year. The constraints in buildable land and skilled labor will push for more stable and sustainable home value growth. The current rates are bound to encourage more renters to attempt homeownership and boosting the overall rates.
The optimism for 2020 relies tremendously on the economic development its consequences on population growth. Will the sales keep rising? Only time will answer.
Source images : https://pixabay.com/photos/house-real-estate-building-1353389/
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