Prices for existing homes sold in Southern Nevada kept rising through May and are now approaching their all-time peak, according to a report released today by the Greater Las Vegas Association of REALTORS® (GLVAR).
GLVAR reported that the median price for existing single-family homes sold in Southern Nevada during May through its Multiple Listing Service (MLS) was $295,000. That’s up 2.1 percent from the previous month and up 18.0 percent from $250,000 in May of 2017. The median price of local condos and townhomes sold in May was $160,000, up 16 percent from the same time last year.
According to GLVAR, the median price of existing single-family homes sold in Southern Nevada peaked at $315,000 in June of 2006. Prices hit a post-recession bottom of $118,000 in early 2012. With roughly $5,000 increases each month, the market could exceed those records by the end of the year.
A tight housing supply has been one factor pushing up prices. Southern Nevada continues to have about a month and a half supply of existing homes available for sale when a six-month supply is considered a balanced market. Recent surveys by the National Association of REALTORS® (NAR) show more than 70 percent of U.S. homeowners think it’s a good to time to sell, but there are not enough homes available for them to buy.
The low supply may also be slowing down local home sales, which have been running roughly even with last year’s sales pace so far this year after increasing in recent years. The total number of existing local homes, condos and townhomes sold during May was 3,890. Compared to one year ago, May sales were down 10.7 percent for homes and down 3.8 percent for condos and townhomes.
The total value of local real estate transactions tracked through the MLS during May was nearly $1.1 billion for homes and more than $127 million for condos, high-rise condos and townhomes. Compared to one year ago, total sales volumes in May were up 2.5 percent for homes and up 11.2 percent for condos and townhomes.
Homes are also continuing to sell faster. In May, 87.2 percent of all existing local homes and 91.4 percent of all existing local condos and townhomes sold within 60 days. That compares to one year ago, when 81.6 percent of all existing local homes and 87.3 percent of all existing local condos and townhomes sold within 60 days. By the end of May, GLVAR reported 4,118 single-family homes listed for sale without any sort of offer. That’s down 17.2 percent from one year ago.
GLVAR reported that 24.3 percent of all local properties sold in May were purchased with cash, compared to 26.9 percent one year ago. Meanwhile, the number of so-called distressed sales continues to decline. GLVAR reported that short sales and foreclosures combined accounted for 2.6 percent of all existing local home sales in May, down from 6.8 percent of all sales one year ago.
These GLVAR statistics include activity through the end of May 2018. GLVAR distributes statistics each month based on data collected through its MLS, which does not necessarily account for newly constructed homes sold by local builders or homes for sale by owners.