A recent report from Las Vegas Realtors shows that the local property market is starting to stabilize, despite property prices hitting another record.
LVR reported that the average price of existing single-family homes sold through its multiple listing service in southern Nevada in September was $ 406,500. This continues to move up from the all-time record of $ 405,000 set in July.
The average home price is up 20.5 percent from $ 337,250 a year ago. The average price of condos and townhouses sold in September was $ 230,000. That’s also an all-time record, up 17.6 percent from $ 195,000 in September 2020.
“The housing market is starting to stabilize nationwide. This month’s LVR stats suggest we may be doing the same here in southern Nevada, ”said LVR President Aldo Martinez, a longtime local realtor. “Prices are still rising, but they are rising more slowly than in previous months. We may return to the kind of seasonal trends we were used to before the pandemic. Local house prices and sales usually peak in the summer and slow down a bit in the fall and winter before rising again in the spring. The pandemic broke that pattern last year. “
Martinez added that “Local house prices have increased much faster than incomes, and this has led some buyers to look for more affordable options such as condos, townhouses, and even rentals. This is reflected in the new average high in September of $ 230,000 for condominiums and townhouses. “
The local housing supply remains scarce, but has not shrunk in recent months. September was the eighth month in a row in which more apartments were available without supply than in the previous month.
At the end of September, the LVR reported 3,463 single-family homes offered for sale without any offer. That is 27.8 percent less than at the same time last year. The 628 condominiums and townhouses that were listed without offers in September fell by 58.8 percent compared to the previous year.
LVR reported a total of 4,078 existing local homes, condos and townhouses sold in September. Year-over-year sales in September fell 1.9 percent for owner-occupied homes and 19.7 percent for condominiums and townhouses.
Houses are still being sold faster than last year. Martinez said the current sales pace is equivalent to just over a month’s supply of properties for sale.
As for other trends, Martinez said the high end of the local housing market continues to outperform the market as a whole. In fact, 2021 will set a new benchmark for sales of homes priced above $ 1 million.
The local housing market has been recovering steadily since it bottomed out after the recession in early 2012. Since the pandemic began, Martinez said, the local market has generally followed national trends with a shortage of homes for sale, strong demand and historically low mortgage rates paving the way for record home prices.
In addition, he said, builders’ inability to catch up with population growth over the years has exacerbated the supply problem, leading to higher housing prices. Builders are simply unable to build enough houses to meet demand. “
In September, LVR reported that 29.1 percent of all local home sales were bought with cash. That is 17.9 percent more than a year ago. Although that percentage has increased this year, it is still below the high of 59.5 percent in March 2013.
Since eviction and foreclosure bans are still a factor, the number of so-called distressed sales remains at a historically low level. LVR reported that short sales and foreclosures combined accounted for 0.4 percent of all existing local home sales in September. That compares to 1 percent of all sales a year ago, 2 percent of all sales two years ago, 2.5 percent three years ago, and 5.2 percent four years ago.
This LVR statistic covers activity through the end of September. LVR distributes statistics each month based on data collected through its MLS, which does not take into account all newly built homes sold by local builders or sold by owners.
Further highlights are:
■ The total value of local real estate transactions tracked through the MLS in September was nearly $ 1.6 billion for homes and more than $ 218 million for condos, high-rise condos and townhouses. Compared to the previous year, the total sales values in September rose 17.1 percent for homes and 42.9 percent for condominiums and townhouses.
■ Houses were sold faster this year than in previous years. In September, 94.7 percent of all existing local homes and 93.8 percent of all existing local condos and townhouses were sold within 60 days. This is compared to a year ago when 82.6 percent of all existing local homes and 79.9 percent of all existing local condos and townhouses were sold in 60 days.
Las Vegas Realtors (formerly known as GLVAR) was founded in 1947 and provides education, training, and political representation to its more than 16,500 local members. The National Association of Realtors Local Representative, LVR, is the largest professional organization in southern Nevada. Each member receives the highest professional training and has to adhere to a strict code of ethics. Please visit LasVegasRealtor.com for more information.
