Have We Reached a Home Price Peak?
Here are my thoughts on the housing market and a potential “peak” of prices
The July numbers are in for the Las Vegas real estate market, and I’m here today to give you my report. The question that’s been on everyone’s mind lately is “Have we reached the peak of home prices?” They keep going up, but is it finally time for them to drop?
I don’t have a crystal ball, but I can give you the data from the trenches in July to let you know what we’re seeing out there.
Closed sales for single-family homes were only up 0.8% from July 2020. This is telling us that buyer fatigue has set in a little bit. It’s also telling us that pricing is starting to change. We’re still seeing yearly appreciation as the median home price rose by 22% from 2020 to $405,000. It’s also up $10,000 from just last month.
We’re a long way from having a balanced market.
At the same time, inventory remains super low. We have slightly more inventory than we did last month, but we still only have 1.2 months of available homes. A balanced market has six months of inventory, so we’re a long way from that.
So we’re still in a seller’s market and homes are still getting multiple offers, but the homes that sell quickly are those that are priced in line with the market. If you want to sell quickly and for top dollar, you can still do so in this market.
If you’re a buyer, this increase in inventory and slight drop in sales is good for you. Interest rates also remain low, making real estate a fantastic long-term investment.
If you’re thinking about selling, buying, or real estate in general, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.