More homes are hitting the local real estate market. On the surface, that typically would lead one to raise hopes on the side of the buyer, as more inventory usually leads to lower prices. Though, as local real estate experts are warning, the current housing market is a lot more complicated.
“I’m definitely seeing more inventory coming on the market, explained Keller Williams Southern Nevada realtor, Cristi Jessee.
Jessee has seen firsthand the increase in the number of homes hitting the market this year. Though, she adds, it’s going to take more time for the buyer to even the playing field.
“While we are seeing more inventory coming on the market, we’re still at a record low,” she said.
Between January and May 2021, Las Vegas REALTORS is reporting nearly one thousand more homes to market for the month.
“In January it was 2,800 homes (to market), in February we brought 3,017 — so that was 200 more homes than the previous month. In March we brought 3,500 homes to market, so that already was increasing that number by another 500 properties,” said Las Vegas REALTORS president Aldo Martinez. “In April we brought 3,600 to market and here we go in May, we brought 3,700 homes to market. So, every month we’re bringing more homes to market to be sold, it’s just being absorbed.”
Martinez and Jessee both explained that our increasing population is bringing on a need for more new homes. The issue with new construction home shortages started back in 2008, following the recession. An issue that Martinez said was just showing signs of recovery; then came 2020.
“Remember when the pandemic first hit? All the food was gone off the shelves,” he stated. “I go, ‘What do people expect? Do they think that people are going to stop fabricating food?’ But here we did have that problem. Builders stopped fabricating houses.”
A current lumber shortage is holding up inventory as new home developers can’t get the materials needed to build.
“So they’re releasing the lots two and three at a time and sometimes they have 80 people waiting for a lot,” added Jessee. “The past two weekends, I’ve been on Zoom calls in lotteries waiting with clients to win a lot and they’re up against 80 other people for three lots.”
The lumber shortage is also driving up costs, reflected in home prices.
With low interest rates continuing, the homes that are for sale are also getting quickly snatched up. Experts say if you are in the market to buy now, preparation will help lead to keys.
“The best thing you can do is get all your ducks in a row mortgage-wise,” said Matt Frankel a Certified Financial Planner with The Ascent. “Meaning get a full pre-approval.”
Summer is historically the peak selling season as families like to move when their kids aren’t in school. The experts expect more houses on the market the next few months, again adding the realty reality: it’s a seller’s market these days.