The Summer heat has finally arrived in Las Vegas and our real estate market is feeling it, too. Welcome to the June issue of the Monthly Minute Market Update for southern Nevada. After the stats, we’ll be sharing a follow-up to last month’s main topic, along with yet another impressive national ranking for our real estate market. But let’s start first with the numbers.
New listings increased again in May as 4,697 single-family residences came to market, up 6% from April. Year-to-date, 3,000 more home have been listed, which is an increase of 16%. The existing float of homes for sale remains 88% ahead of this same time last year. Fortunately, the new sales pace remains flat at year-high levels. While new closings were up a strong 14% from April numbers and were 4.5% ahead of last May’s frenzied pace. Although, our year-to-date sales are 7% behind 2018’s stride.
Probably the most telling statistic of all is our median sales price, which at $300,000, has remained flat for the last nine months, and is in sharp contrast to the hyper double-digit appreciation rates we’ve experienced over the last several years. There’s a significant silver lining to this flat market, which I’ll share in just a moment.
In last month’s issue, we updated you on the billion dollar expansion of the Las Vegas convention center, which will add 1.4 million square feet of space, and maintain our international stronghold on the convention industry.
Well, a couple of weeks ago, a big announcement was made, sharing plans for how conventioneers will efficiently navigate across what will be a 200-acre facility. Technology entrepreneur and engineer, Elon Musk, obtained the first major contract for his Boring Company, which will create underground people movers through twin tunnels bored below the convention space. The contract is said to be worth just under $50 million and is intended to be completed on the same schedule as the convention space expansion, intending to welcome the January 2021 attendees of the Consumer Electronics Show.
Finally, to the silver lining, we mentioned earlier. Skylar Olsen, Chief Economist at Zillow, recently announced the Ten Best Metros for First Time Home Buyers and coming in just behind Tampa’s first place ranking, was Las Vegas. The research was based on four key metrics: a lower median home value which results in smaller down payments; a stronger home appreciation forecast which helps buyers grow their overall wealth; a high inventory to household ratio indicting available supply; and a high share of listings with price guts. So the silver lining is that while southern Nevada is experiencing a nine-month pause in appreciation, prices are expected to continue to rise in the future. Flat prices are refueling the housing market, which typically starts with first time home buyers. We are the second best market in the country for that buyer profile.
Oh, and did we mention the Raiders are coming? Thanks for watching and for making Coldwell Banker Premier Realty your real estate company of choice. Stay safe and sane for your 4th of July celebrations. We’ll see you next month.