Investors own more than 131,000 homes in the Las Vegas Valley now.
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Sales of previously owned homes rose 4.8% in November compared to October, according to the National Association of Realtors. This puts them at a seasonally adjusted annual rate of 4.15 million units.
Sales were 6.1% higher than in November 2023. That is the third-highest pace of the year and the largest annual gain in three years.
This number is based on lockdowns, so contracts will likely be signed in September and October. Mortgage rates fell to an 18-month low in September, but then rose in October.
“Home sales momentum is picking up,” said Lawrence Yun, chief economist at NAR. “More buyers have entered the market as the economy continues to add jobs, housing inventory grows compared to last year, and consumers become accustomed to a new normal of mortgage rates between 6% and 7%.”
The supply of homes for sale at the end of October reached 1.33 million units, an increase of 17.7% from November of last year. At the current sales rate, that represents a 3.8-month supply. The six-month offer is considered balanced between the buyer and the seller.
This scarce supply continued to put pressure on prices. The median price in November was $406,100, up 4.7% year over year. That year-over-year comparison is starting to pick up steam again. Prices rose 4% annually in October.
Price gains were strongest in the Northeast and Midwest, at 9.9% and 7.3%, respectively. Approximately 18% of homes sold at above list price.
First-time homebuyers made some progress, accounting for 30% of November sales, compared to 27% in October, but slightly lower than last year. Cash still dominates 25% of sales. However, investors only bought 13% of sales, down from 18% in November last year.
“Is this an indication that investors or people who are more number crunchers think housing prices are at the top? Or is there another reason why rents have stopped rising?” Yoon wondered.
The biggest sales gains continue to be found at the upper end of the market. Sales of homes priced over $1 million were up 24.5% compared to November of last year, while sales of homes priced under $100,000 were down 24.1%.
Mortgage interest rates rose again today, with the average 30-year fixed rate rising by 21 basis points on Wednesday, following the Federal Reserve's latest meeting. It is now expected that there will be fewer interest rate cuts by the Fed next year.
