Home builders setting record with construction pace in southern Nevada

“We haven’t built enough homes in Las Vegas, and with the low interest rate, you have a perfect storm of high demand, low inventory and, voila, prices increasing,” Blanchard said.

More than 3,600 new home permits were pulled in southern Nevada during the third quarter, more than double second quarter figures. September’s count was up 90% over the same time last year, according to the Las Vegas Review Journal. New home sales and the median new home sales price were also up over the same time last year.

Home sales in southern Nevada have hit a median price sale range record for the fifth month in a row, landing at $340,200 for the month of October.

The number of local homes available for sale is currently at a one-and-a-half month supply, Blanchard said, when the normal sales pace or balanced market is a six month supply. This is similar to what is happening across the rest of the country; National Association of Realtors reports a 2.7 month supply through September.

“The one fear I have is that people take their money off the table,” Blanchard said. “If homeowners finally start feeling that we’re at the top of the market and want to remove the money off the table and start selling, that could cause some potential issues with values in Vegas. Otherwise, I think this continues up until the time that someone starts changing the demand by increasing interest rates.”

By

 Kimberly James | The Center Square