Investors currently own more than 131,000 homes in the Las Vegas Valley.
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According to the National Association of Realtors, sales of existing homes increased 4.8% in November compared to October. This results in a seasonally adjusted annualized sales volume of 4.15 million units.
Sales increased by 6.1% compared to November 2023. This is the third fastest pace of the year and the largest annual increase in three years.
This number is based on closings, so contracts may have been signed in September and October. Mortgage rates fell to an 18-month low in September, but rose sharply in October.
“Momentum in home sales is increasing,” said Lawrence Yun, NAR’s chief economist. “More buyers are entering the market as the economy continues to add jobs, housing inventory is higher than it was a year ago, and consumers are getting used to the new normal of 6% to 7% mortgage rates. are participating.”
As of the end of October, the number of housing units for sale was 1.33 million, an increase of 17.7% from November last year. At the current sales pace, this equates to 3.8 months’ supply. A six-month supply is considered balanced between buyers and sellers.
This tight supply continued to pressure prices. The median price in November was $406,100, an increase of 4.7% from the same month last year. Yearly comparisons are increasing again. Prices in October were up 4% annually.
The largest price increases were in the Northeast and Midwest, at 9.9% and 7.3%, respectively. Approximately 18% of the homes sold for above list price.
First-time homebuyers gained some momentum, accounting for 30% of sales in November, up from 27% in October, but slightly down from a year ago. Cash remains important as it accounts for 25% of sales. However, investors withdrew only 13% of sales, down from 18% in November last year.
“Does this indicate that investors and numbers-obsessed people think house prices are at an all-time high? Or is there another reason why rents are no longer rising?”Yun asked.
The highest growth in sales continues to be in the luxury goods market. Sales of homes priced over $1 million increased by 24.5% compared to last November, while sales of homes priced under $100,000 decreased by 24.1%.
Mortgage rates are rising again today, with the average rate on a 30-year fixed rate jumping 21 basis points Wednesday after the latest Federal Reserve meeting. The Fed is expected to reduce its rate cuts next year.
