Investors now own more than 131,000 homes in the Las Vegas Valley.
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According to the National Association of Realtors, condo sales rose 4.8% in November compared to October. This brings them to 4.15 million units, seasonally adjusted for the year.
Sales were 6.1% higher than in November 2023. This is the third-fastest pace of the year and the largest annual gain in three years.
This count is based on deals, so contracts were likely signed in September and October. Mortgage rates fell to an 18-month low in September but then rose sharply in October.
“Home sales momentum is picking up,” said Lawrence Yun, NAR chief economist. “More buyers have entered the market as the economy continues to create jobs, housing inventory increases compared to last year and consumers adjust to a new normal of 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, this represents 3.8 months of supply. A six-month supply is considered settled between buyer and seller.
This tight supply continued to put pressure on prices. The average price in November was $406,100, up 4.7% from a year ago. The year-on-year comparison is becoming more important again. Prices rose 4% annually in October.
Price increases were greatest in the Northeast and Midwest at 9.9% and 7.3%, respectively. About 18% of homes sold above list price.
First-time home buyers gained some ground, accounting for 30% of November sales, up from 27% in October but down slightly from a year ago. Cash is still king at 25% of sales. However, investors withdrew only 13% of sales, compared to 18% in November last year.
“Is this an indication that investors or people who pay more attention to numbers believe that property prices are at their highest? Or is this another reason why rents are no longer rising?” asked Yun.
The greatest sales growth continues to be in the upper market segment. Sales of homes priced over $1 million rose 24.5% compared to November last year, while sales of homes priced under $100,000 fell 24.1%.
Mortgage rates are higher again today, with the average 30-year fixed loan rate rising 21 basis points on Wednesday following the Federal Reserve's latest meeting. Fewer interest rate cuts from the Fed are now expected next year.