Is the Las Vegas Real Estate Market Dropping?

The Las Vegas real estate market is going through a lull, but that doesn't mean prices are dropping. According to the latest report from Las Vegas Realtors (LVR), 3,758 existing local homes, condominiums and townhomes were sold in May. This was a decrease of 8.8% for homes and 6.6% for condominiums and townhomes compared to the same time last year. Despite this, the area's real estate market continues to grow as new residents arrive daily and contribute millions of dollars in shares to sell their homes in the most expensive real estate markets. The current local inventory of homes in Las Vegas is little more than a two-month supply of homes available for sale. This means that buyers are paying above the sale price and homes are selling quickly. Prices have been rising rapidly and have reached new all-time highs almost every month. Downtown Las Vegas, where casinos and hotels are located, is the city's most accessible neighborhood, but housing is scarce there. Tourists are investing billions of dollars in southern Nevada, supporting thousands of tourism jobs. 851 condominium and townhome units were sold in May and, by the end of the month, there were 797 units available, with 0.9 months of inventory on the market. As in September, there were 1.1 months of inventory in the market by the end of October, however, there was a slight decrease in the total number of units available, which reached 3,287 compared to 3,463 last month. According to PwC's annual real estate report, the Las Vegas real estate market will enjoy a population growth rate well above the national growth rate. Home sales fell sharply in both April and May 26 compared to the previous month and year due to the coronavirus outbreak and state's stay-at-home order. Overall, despite a decrease in sales compared to last year, Las Vegas realtors are expressing confidence in the stability of house prices and in the number of housing units available on the market. Prices continue to rise and inventory continues to decline, making it less attractive to new buyers than it used to be. However, with tourists investing billions of dollars into southern Nevada and population growth rates well above the national average, it's safe to say that house prices won't be dropping anytime soon.