I am confident that anyone who has tried to predict where they would be by the end of 2020 was wrong. Nobody could have guessed the realities of the past year. Trying to plan for the future, be it professionally or privately, has been a challenge for many because we just don’t know what lies ahead. We started the year with an air strike on Iranian Army General Qasem Soleimani and ended the year with a global pandemic that killed hundreds of thousands and new leadership for the country. To say the future is uncertain is an understatement.
One industry that has not gone as expected is the Nevada housing market, which was both interesting and surprising to watch. When the realities of the pandemic first hit Nevada, many predicted that the real estate market, particularly on the southern end of the state, would collapse like it did during the Great Recession. All year long we have watched real estate prices and waited for the other shoe to fall. Instead, Nevada found itself in the midst of a residential real estate boom in late 2020. One reason for the hot market is that mortgage rates are at an all-time low. According to FreddieMac, the average 30-year fixed-rate mortgage was 2.71 percent, a little more than a full percentage point less than last year.
In southern Nevada, the Las Vegas Association of REALTORS (LVR) reported an all-time record in property sales for the sixth consecutive month, based on the latest data available at press time. The average price of existing single-family homes sold through the Multiple Listing Service (MLS) was $ 345,000 in November, up 12.4 percent from the same month last year. Total sales also rose, 26.1 percent for homes and 34.7 percent for condominiums and townhouses, which significantly reduced the supply of apartments. Northern Nevada has also been grappling with a significant housing shortage for a number of years, although sales are slightly higher. The median sales price for a single family home was $ 455,000, although the median condo or townhouse price rose 7.8 percent year-over-year to $ 275,000. So we’re looking at a hot seller market that doesn’t seem sustainable either from inventory or house prices.
For comparison, let’s take a look at our neighbor California, where real estate prices are notoriously high. According to the United States Census, California had the highest outflow of any state in 2017. From 2017 to 2018, about 50,000 of these residents moved to Nevada. Honestly, why shouldn’t they? It just makes sense. Nevada is close to all the amenities California has to offer, except we have cheaper housing, a better business climate, and a lower cost of living to name a few.
Call to Action: This year it’s time to move to Nevada and buy. In 2021, distressed housing offers are expected to flood the market, pushing prices down, while interest rates remain low. It’s a perfect storm for anyone considering moving. Nevada is the place to go if you are a business owner, want to retire, or are simply looking for an affordable, versatile place to raise a family. We say hello to our new California neighbors. But do us a favor and leave behind the politics that are destroying this state’s economy.
By whose authority?
For more information on my comment and some of my research to help me, please visit www.LyleBrennan.com.
2 Chronicles 7:14 (NKJV) “When my people, called by my name, humble themselves and pray and seek my face and turn from their evil ways, then I will hear from heaven and forgive their sins and heal their land.”