Investors now own more than 131,000 homes in the Las Vegas Valley.
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First-owner home sales rose 4.8% in November compared to October, according to the National Association of Realtors. That put them at a seasonally adjusted annual rate of 4.15 million units.
Sales were 6.1% higher than in November 2023. It is the third highest pace of the year and the biggest gain in three years.
This count is based on closings, so contracts were likely signed in September and October. Mortgage rates fell to an 18-month low in September, but then rose in October.
“The momentum in home sales 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 is growing compared to a year ago, and consumers are getting used to a new normal of mortgage rates between 6% and 7%.”
At the end of October, the supply of houses for sale was 1.33 million units, 17.7% more than in November last year. At the current rate of sales, this represents a 3.8 month supply. 6 months supply is balanced between buyer and seller.
This tight supply continued to put pressure on prices. The average price in November was $406,100, up 4.7% year over year. He’s winning that annual comparison again. Prices rose 4% annually in October.
Price gains were strongest in the Northeast and Central, up 9.9% and 7.3% respectively. About 18% of homes sold above list price.
First home buyers gained slightly, accounting for 30% of sales in November, up from 27% in October, but slightly lower than a year ago. Cash remains king at 25% of sales. Investors, however, withdrew just 13% of sales, down from 18% in November last year.
“Is that because investors or more people think house prices are at an all-time high? Or is that another reason why rents aren’t going up?” Yun asked.
The biggest sales gains remain at the top of the market. Sales of homes over $1 million rose 24.5% from last November, while sales of homes under $100,000 fell 24.1%.
Mortgage rates are higher again today, with the average 30-year fixed rate rising 21 basis points on Wednesday, after last. Federal Reserve the meeting Fewer Fed rate cuts are expected next year.
