Tough economic times have a tendency to depress home sales. To some degree, the coronavirus pandemic has resulted in less than ideal economic conditions. But has the pandemic affected home sales in Las Vegas? It would appear not.
Numbers from late July suggest that Vegas home sales are doing exceptionally well. Prices reached a record this past June, primarily due to a sudden surge in the resale market. Buyers were looking for everything from single homes to high rises for sale.
Historically Low Interest Rates
There is no denying the fact that the pandemic has hurt a Vegas economy wholly dependent on tourism and gambling. The city has seen an exceptional level of layoffs as casinos were initially shuttered, then allowed to reopen at limited capacity. Local hotels have not done all that well either.
It all adds up to a market in which you might expect lower prices and a glut of inventory. You would expect to look for a home for sale and be able to name your own price. But that hasn’t been the case. Las Vegas high rises and single homes have only been priced higher in response to demand.
It has been suggested that historically low interest rate are the main driver. We have seen this sort of thing before. When interest rates are high and consumer credit is shaky, it becomes more difficult for all but the most creditworthy customers to buy homes. Falling interest rates combined with stronger credit opens doors to larger numbers of buyers.
With interest rates hovering around 2%, more people can afford to buy these days. Perhaps buyers aren’t worried about the long-term economy, expecting that the gambling industry will eventually rebound. They expect casinos to return to full capacity and hotels and restaurants to start hiring again.
Consumers Have Plenty of Choices
Another thing that isn’t hurting the Las Vegas housing market is a lack of capacity. There are plenty of options available. Vegas has high rises for sale at some of the most prestigious addresses. Buyers can also choose from less pricey condominiums, single-family homes, duplexes and more.
Developers are staying busy as well. As the city’s population grows, they are keeping up with new housing developments aimed squarely at buyers moving into the area. Indeed, population growth in Las Vegas is another factor contributing to strong demand.
For buyers, it’s all about finding the right property and a real estate agent capable of closing the deal. Needless to say that agents are staying busy despite the pandemic.
There is no doubt that coronavirus has affected some segments of the economy quite severely. We know that all too well here in Las Vegas. But thankfully, the pandemic seems to have had very little impact on real estate. At Realty Pros, we are as busy as ever helping our clients with all of their real estate needs. We can tell you that the Las Vegas market is as strong as ever.
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