Property prices in southern Nevada are pausing at record levels

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LAS VEGAS – A report released Wednesday by Las Vegas REALTORS® (LVR) shows that local property prices remained stable as families were busy taking their kids to school, getting graduates to college, and all the seasonal reasons causing what LVR leaders have called a temporary pause as the market prepares for its final surge before the expected holiday slowdown begins.

LVR President Aldo Martinez

Meanwhile, the local housing supply continues to grow slowly, making August the seventh straight month in which more properties were available without offers than the previous month.

LVR reported that the average price of existing single-family homes sold through its Multiple Listing Service (MLS) in southern Nevada in August was $ 405,000. This corresponds to the all-time record set in July. The average home price is up 20.9% from $ 335,000 a year ago. The average price of condos and townhouses sold in August was $ 229,000. That’s also an all-time record, increasing 23.8% from $ 185,000 in August 2020.

“Having set records every month since January, expectations for this ongoing trend were high. However, we must always take into account the seasonal conditions that lead to breaks in our markets. As mentioned in our opening remarks, these breaks are normal, at least for the time being, ”said LVR President Aldo Martinez. “Prices have increased much faster than incomes. That is not sustainable in the long run. Even with mortgage rates near all-time lows, being able to afford a home still presents challenges for some buyers and working-class families. This is causing some buyers to consider alternatives to the single family home and look for more affordable options like condos, townhouses, and even rent. “

Martinez, a longtime local REALTOR®, said the current sales pace is less than a month’s supply of properties for sale. However, he added that more apartments had come onto the market recently, which stabilized the previously steadily shrinking housing supply.

At the end of August, the LVR reported 3,256 single-family homes for sale without any offer. Compared to the previous month, this is a decrease of 29.8% compared to the same point in time last year. The 687 condominiums and townhouses that were listed with no listings in August fell 55.5% year-on-year.

LVR reported a total of 4,098 local homes, condos and townhouses sold in August. Year-over-year sales in August rose 10.3% for condos and townhouses, and 29.8%. This year so far, local home sales are on track to surpass last year’s total.

As for other trends, Martinez said that the high end of the local housing market continues to outperform the market as a whole. At the current sales pace, he said 2021 should be a record year 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 beginning of the pandemic, the local market has been more in line with national trends, according to Martinez, with a shortage of homes for sale, strong demand and historically low mortgage rates leading to record home prices. To make matters worse, the builders are not building enough houses to meet demand. Homeowners stay longer and move more slowly than in previous years. Martinez urged buyers to be patient and persistent, noting that more homes have become available in recent months.

At the same time, more and more buyers are paying cash for homes. In August, LVR reported that 47.1% of all local home sales were bought with cash. That’s an increase from 17.5% a year ago when the housing market was adjusting to the start of the pandemic. Although this percentage is higher than it has been in years, it is still below the high of 59.5% in March 2013.

Since eviction and foreclosure bans still exist, the number of so-called distressed sales remains at a historically low level. LVR reported that short sales and foreclosures combined made up only 0.3% of all existing local home sales in August. That’s 1.2% of all sales a year ago, 2.1% of all sales two years ago, 2.5% three years ago, and 6.1% four years ago.

These LVR statistics cover activity through the end of August 2021. The LVR distributes statistics each month based on data collected through its MLS, which does not necessarily take into account 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 August was more than $ 1.5 billion for homes and nearly $ 225 million for condos, high-rise condominiums, and townhouses. Compared to last year, total sales values ​​in August rose 29.0% for homes and 66.0% for condominiums and townhouses.
The houses are selling faster this year than in previous years. In August, 96.4% of all existing local homes and 95.8% of all existing local condos and townhouses were sold within 60 days. Compared to a year ago when 77.2% of all existing local homes and 73.1% of all existing local condos and townhouses were sold in 60 days.

About LVR
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. More information is available at www.LasVegasRealtor.com.


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