Is the Las Vegas Housing Market Immune to COVID-19?
Months have passed since the onset of the global pandemic, "coronavirus," and the housing sector has felt the hit. The World Bank declared a global economic recession caused by the pandemic, and there were predictions of the economy shrinking by 5.2% on a worldwide scale.
The impact of COVID-19 has affected almost every sector, with the housing market being the most affected. Las Vegas Housing Market is one of the top performers in the US, which is comprised of mostly single-family units. However, Las Vegas house prices have hit a record high despite the continuous economic harshness inflicted by the pandemic.
Many realtors and home renters wonder how the real estate market will look like as the pandemic continues. Top Tier Realty will assist you in purchasing, renting, and selling your home. Our team of real estate agents in Las Vegas will offer great sources to have all your housing market questions answered.
Las Vegas Housing Market During COVID-19
Despite many Americans filing for unemployment since the start of the coronavirus pandemic in March, the housing markets are recording an increase in prices. The median sales price of single-family homes rose by 6.9% to $325,000, but sales of single-family homes in Las Vegas fell by 15 percent every year in June to 2,934 as per the Las Vegas Realtors (LVR) report. However, new listings declined by about a quarter from last year.
According to the National Association of Realtors, home resales have increased by 20.7 percent in June while sales of new homes jumped by 13.8 percent. The LVR president, Tom Blanchard, recorded that the houses are getting sold but at a higher price.
The median price of townhomes and condominiums jumped to $187,250, which is a 5.3 percent increase. In June, new house listings rose by 7.9 percent as the median price of the total number of houses sold in the same month was up 1.8 percent to $407,000.
Las Vegas' tourism (dependent economy) has been harshly hit by the coronavirus pandemic, forcing many people to stay at home for fear of catching the virus. The housing market was initially affected, but lately, it stepped up because of fast-rising sales and record prices despite the rise in the unemployment rate.
In one way or another, the stay-at-home orders accelerated the rate of buying and selling homes. As a result of too much stay indoors, many people no longer like their homes, and the quick option they have is selling it. At the same time, more than a quarter of buyers want to buy new homes urgently.
With casinos allowed to open under strict Covid-19 rules and the resumption of open houses, there is a possibility for an increase in market activity. The momentum is expected to extend into next year. Also, as the moratorium lifts, the number of properties is envisioned to increase since more investors will list them on the market.
Has Covid-19 affected rental houses?According to NAR, 42% of tenants can pay rent, 40% are requesting extensions, which they are likely to get, while 16% will not get any help. With the pandemic still going on, it is hard to imagine how the housing market will be coming months. Whether you want to buy, rent, or sell your home, we are committed to helping you make the best decision at Top Tier Realty.