Investors own more than 131,000 homes in the Las Vegas Valley now.
Las Vegas Review-journal | Tribune News Service | Getty Images
Sales of pre-owned homes rose 4.8% in November compared to October, according to the National Association of Realtors. That puts them at a seasonally adjusted, annual average of 4.15 million units.
Sales were 6.1% higher than in November 2023. This is the third fastest pace of the year and the biggest annual gain in three years.
This figure is based on closings, so contracts were most likely signed in September and October. Mortgage rates fell to an 18-month low in September but then rose in October.
“The momentum for home sales is picking up,” said Lawrence Yun, NAR’s chief economist. “More buyers have entered the market as the economy continues to add jobs, housing inventory is growing compared to last year, and buyers are getting used to mortgage rates between 6% and 7%.
The supply of homes for sale at the end of October was 1.33 million units, up 17.7% from November last year. At the current sales rate, that represents a 3.8 month supply. A 6-month supply is considered equal between the buyer and the seller.
That strong supply continued to put pressure on prices. The median price in November was $406,100, up 4.7% year over year. That annual comparison is growing again. Prices were up 4% annually in October.
Price gains were strongest in the Northeast and Midwest, at 9.9% and 7.3%, respectively. About 18% of homes sold for more than list price.
First-time home buyers gained ground, representing 30% of November sales, up from 27% in October but slightly lower than last year. Cash is still king at 25% of sales. Investors, however, withdrew just 13% of sales, down from 18% in November last year.
“Is this an indication that many investors or price takers think housing prices are high? Or is it another reason why rents are not going up?” Yun asked.
The biggest sales gains continue to be at the top end of the market. Sales of homes priced over $1 million fell 24.5% from November last year, while sales of homes priced under $100,000 fell 24.1%.
Mortgage rates are up again today, with the 30-year variable rate averaging 21 points on Wednesday, following the Federal Reserve’s latest meeting. Fewer Fed rate cuts are now expected next year.
Source link
