LAS VEGAS (KTNV) — It’s not just Las Vegas where the houses are selling like hotcakes.
According to Norada Real Estate Investments, more existing homes were sold in 2020 than in any year since 2006. Experts say that low mortgage rates and increase in working from home because of the pandemic field a rapid increase in housing demand.
RELATED: Housing market in Southern Nevada remains hot, sets another price record in April
However, even though the demand for houses remains strong, the housing supply is still lagging behind. This resulted in the sale of existing homes falling 3.7% nationwide for the month of March.
Additionally, mortgage rates are starting to tick back up although the Fed has indicated it plans to keep rates low at least until 2022.
The median sales price nationwide for an existing home has reached historic high of $375,000, which is an increase of 17.2% since last year.
TOP 10 HOTTEST METRO AREAS
- Sacramento-Roseville-Arden, California
- San Jose-Sunnyvale-Santa Clara, California
- Charlotte-Concord-Gastonia, North and South Carolinas
- Boise City, Idaho
- Seattle-Tacoma-Bellevue, Washington
- Phoenix-Mesa-Scottsdale, Arizona
- Harrisburg-Carlisle, Pennsylvania
- Oxnard-Thousand Oaks-Ventura, California
- Denver-Aurora-Lakewood, Colorado
- Riverside-San Bernardino-Ontario, California
Millennials are the biggest group of home buyers.
About 4.8 million millennials are turning 30 this year, which is the age that people typically begin looking to buy a home.
However, millennials often want a larger house with a larger plot of land for a fraction of the price they would pay in a metro area. This has led to increased sales in areas like Portland, Maine; Bay City, Michigan; and Pueblo, Colorado. Additionally, many zip codes in Idaho have been popular moving destinations.
As a result, the housing inventory has increased in the four major real estate markets — Los Angeles, Chicago, San Francisco and New York.
New construction of single-family homes is expected to continue to grow in 2021. However, the price of new homes is now being driving up by the increase in lumber prices.