Record Breaking Market in 2020
In February, before the COVID-19 world became every American’s new normal, Nevada home values reached record highs. Despite the pandemic-driven economic uncertainty that began in March, home values continued to climb every month of the year. Overall, 2020 saw a 12.3% increase in average home price compared to 2019.
The climbing home values were largely driven by record-low interest rates and record-low available inventory. In fact, there was a 42.5% year-over-year decrease in homes for sale in 2020. This caused a simple problem of supply and demand.
There was not enough supply to meet the demand, so people began paying higher prices to get the homes they wanted. Prospective homeowners also began buying homes more quickly, resulting in a 4.4% drop in average days spent on the market for a home.
Despite the low inventory, monthly sales still went through. Despite a drop in sales during the later Spring months, likely caused by COVID-19, sales recovered later in the year, ending with a 25.7% year-over-year increase in all closed sales for 2020.
2021 Forecast, A Seller’s Market
2020 was a seller’s market, and this trend is expected to continue in 2021. In a seller’s market, home sellers have an advantage over home buyers due to decreasing competition and rising home values.
Growth in Sales
According to Realtor.com’s 2021 forecast, sales are expected to increase by 12% in 2021. Buyers are likely to continue to take advantage of low-interest rates, which are expected to remain relatively low compared to average rates.
Home Values Rising
While home sales rise, home values are also expected to rise. Realtor.com predicts a 5.2% increase in home prices for the Greater Las Vegas Area during 2021. This is great news for Las Vegas homeowners. If you’re a potential buyer, you may want to consider buying earlier in the year so you can see your investment rise in value throughout the year.
Why Work With an Agent?
Real estate agents understand how to navigate even the most competitive markets. They have experience helping buyers get good deals, even in a seller’s market. They also know how to work with sellers to get awesome offers on their homes.
Agents, like the pros at Homie, know all the tips and tricks to make your real estate experience run smoothly. You won’t want to navigate Las Vegas’ competitive market without one!
Talk to A Homie in 2021
If you’re looking to list your home during 2021, click here to get in touch with us and start the process. A Homie agent will help you take advantage of this sellers’ market and get you the price for your home that you’re aiming for.
If buying a home is part of your plan during this New Year, we can help you navigate the market and find an awesome deal on your dream home. Click here to start the process!