CLARK COUNTY HOUSING
Good News for Buyers
You won’t read this in the paper.
The RMLS stats for July are in. Let’s get started.
The graphs below provide some insight on where the market is and perhaps where it might be headed. Let me summarize.
- Listing Inventory:
During all of 2020, Covid was causing owners to avoid selling. No one felt comfortable selling during the pandemic. The graph below shows how the number of listings during 2020 declined steadily even during the season we traditionally see increases.
The same graph in 2121 shows the increase in listings to date and suggests owners have largely shaken off the effects Covid. However, our listing numbers are still very low and the rest of 2121, if we follow traditional seasonality, will decline the rest of the year. Consequently, I do not expect to see growing numbers of listings for the rest of 2121. I expect buyer’s choices for properties through 2121 to continue tight and the market to remain competitive and for prices to rise further. Buyers will continue to experience the same challenges as we have seen over the past few months.
- Pending Sales:
Pending sales have declined slightly for 2 months straight despite modest increases in inventory. Again, more evidence (see #3 below) the number of serious buyers is declining. If buyer interest had remained steady or strong then the increase in listings would have resulted in greater pending sales rather than a decrease .
- Buyer Activity:
We do have a recent gradual decline in buyer activity over the past few weeks. Seasonally this is typical yet this did not occur during 2020. Perhaps the effects of Covid are behind us? The slight and gradual decline in buyer activity should continue as we get closer to the start of school, again, if the effects of Covid are behind us.
We have very early indications that the market is ready to ease back to more normal conditions but certainly it is too early to say for sure. From a practical standpoint, changing conditions can not yet be felt. We still have rising values, quick sales and fast offers, very low inventory levels and strong showing activity. But there are early indications change may be coming soon. But don’t just take it from me. Look at this timely news.
The New York Times reported just yesterday, Sunday, August 15, a slight cooling of the market. (Click on link) “It is just moving from super hot to normal hot,” said Lawrence Yun, the chief economist for the National Association of Realtors, which has not yet released its July data. “It is still a seller’s market.”
Another buried comment in the same article that blows my mind was about the appreciation of somewhat “smaller” homes. “A typical 2,000-square-foot home still saw brisk price appreciation, up 18.7 percent from July 2020.” 18%, WOW, that is a huge number.
BUYER ACTIVITY (LOCKBOX OPENINGS)