A report released by Las Vegas REALTORSÂ® (LVR) on Friday shows that local property prices have surpassed the $ 400,000 mark for the first time while demand continues to outpace supply.
LVR reported that the average price of existing single-family homes sold through its Multiple Listing Service (MLS) in July in southern Nevada was $ 405,000. That beats the previous record of $ 395,000 set in June. The average home price is up 22.7% from $ 330,000 a year ago. The average price of condos and townhouses sold in July was $ 224,250. That’s also an all-time record, up 14.4% from $ 196,000 in July 2020.
LVR President Aldo Martinez said he expected local home prices to exceed $ 400,000 this summer and that âthe average affordable price for southern Nevada residents may soon be out of reach. As we’ve been saying for months, property prices are rising faster than incomes here in southern Nevada, and that doesn’t seem sustainable in the long run. Even with mortgage rates near all-time lows, we know it will be difficult for first-time buyers and working-class families to buy a home. “
He said many buyers are turning to condos and townhouses while others “have to return to rentals because they can no longer buy at those prices”.
Martinez, a longtime local REALTORÂ®, said the low supply of homes for sale continues to drive prices higher. This presents a challenge to potential buyers – and a rare opportunity for sellers. He said, âThis has become evident as we continue to see more homes coming onto the market than in the past 10 years. July will be the fifth month in a row that the inventory of homes on the market will surpass the previous month with 4,077 new listings. “
At the end of July, the LVR reported 3,007 single-family homes for sale without any offer. Although down 37.4% from the same point last year, Martinez found that the number of homes listed with no listings actually increased for the fifth month in a row – âIndicators that the market is doing all it can to get one Normalization is struggling, but consumer consumption remains strong. âIn the case of condominiums and townhouses, the 662 properties listed in July with no listings were more than in the previous month, although this stock is still 58.1% lower than at the same time last year.
LVR reported that a total of 4,225 existing homes, condos and townhouses were sold in July. Year-over-year sales in July rose 0.8% for owner-occupied homes and 24.7% for condominiums and townhouses. This year, local home sales this year are well on the way to surpassing the previous year’s total and surpassing the last post-recession high of 38,153 in 2011.
Martinez mentioned another phenomenon that hit the Las Vegas market this year, the luxury market, which historically has sold 300 to 400 units over $ 1 million a year. This year alone, 961 such units have been sold, 928 of them single-family homes. At this rate, 1,500 luxury homes would be sold in 2021, a record. The average price for the luxury market or homes selling for more than $ 1 million is currently $ 1,450,000, with the highest sales this year being $ 25 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, builders are not building enough homes to meet demand and homeowners are staying in their homes longer and moving more slowly than in recent years. Martinez urged buyers to be patient and persistent as there are more homes for sale lately. While bidding wars are still the order of the day and many homes attract multiple bids, many go back to the market and “are then given to the next buyer in line”.
More and more buyers are paying cash for homes. In July, LVR reported that 31.7% of all local home sales were bought with cash. That’s an increase from 16.8% a year ago when the housing market was adjusting to the start of the pandemic. However, this is still well below the March 2013 high of 59.5% for cash buyers.
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 July. That is 1.2% of all sales a year ago, 2.0% two years ago, 2.9% three years ago and 6.4% four years ago.
These LVR statistics cover activity through the end of July 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 homes for sale by owners will. Further highlights are:
The total value of local real estate transactions tracked through the MLS in July was nearly $ 1.7 billion for homes and nearly $ 214 million for condos, high-rise condominiums, and townhouses. Year-over-year, July total sales values ââincreased 30.0% for homes and 52.6% for condominiums and townhouses.
Â· Houses are selling faster than in previous years. In July, 96.0% of all existing local homes and 94.5% of all existing local condos and townhouses were sold in 60 days. Compared to a year ago when 76.7% of all existing local homes and 70.0% of all existing local condos and townhouses were sold in 60 days.
Las Vegas REALTORSÂ® (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 REALTORSÂ® 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.