Home prices in southern Nevada soared in May, but were still below the national average, underscoring the housing frenzy across the country.
Home prices in the Las Vegas area rose 15.5% year-on-year in May, compared to a gain of 16.6% nationally, according to the S&P CoreLogic Case-Shiller Index published Tuesday by the S&P Dow Jones indices.
Phoenix led the report’s 20 markets with a 25.9% year-over-year price increase.
Home prices in the United States rose at a record pace for the second consecutive month in May, said Craig Lazzara, global head of index investment strategy at S&P Dow Jones, in a press release.
“A month ago I called April’s performance ‘truly extraordinary’ and this month I find myself running out of superlatives,” he said.
The Las Vegas real estate market has seen record prices and rapid sales for months, in large part thanks to cheap borrowing costs which have allowed buyers to stretch their budgets. Home hunters have flooded properties with offers and regularly paid more than asking price, and home builders have steadily raised prices, put buyers on waiting lists and accepted bids for lots, have multiple sources said.
In some ways, however, southern Nevada’s rapidly changing market has lagged other cities this year, as shown in Tuesday’s report and others comparing metropolitan areas.
For example, the share of homes in Las Vegas that found buyers within a week of listing (around 51% in April) was in the middle of the pack, and locally, the share of homes that sold above the asking price (15% in February) was one of the smallest in the country.
The Southern Nevada market remains globally overheated as homes sell out quickly and buyers pay record prices.
Still, resale totals plummeted for two months during the normally busy spring buying season before rebounding in June, according to the Las Vegas Realtors trade association, and builders’ sales activity plummeted for the third consecutive month in June, Home Builders Research reported.
Simply Vegas agent Cassidy Cotten said on Tuesday he was still submitting multiple offers on ads, but not as many as he had received before. He could have four to five now instead of 13, he said.
He saw the market “sort of back down”, adding that it was “not as extreme as it was a few months ago”.