Home sales in Southern Nevada fell last month as rapidly rising Valley prices set a new record high and borrowing costs rose.
The median sale price of previously owned single-family homes — the bulk of the market — was $475,000 last month, up 3.3%, or $15,000, from the previous record set in March, according to a new report from the Las Vegas Realtors trade association.
Last month’s median sale price rose 26.7%, or $100,000, from April 2021, according to the association, which reports data from its high-resale listings service.
Amid the typically busy spring buying season, 3,001 previously owned single-family homes traded hands last month, down 8.3% from March and 14.9% from April 2021.
Inventories remain tight overall but rose sharply last month, 2,441 homes were on the market with no offers at the end of April, up 21.7% from March and 33.6% from April of the year latest, the association reported.
Fueled in large part by cheap borrowing costs that allow buyers to stretch their budgets, Southern Nevada’s housing market accelerated last year. Homes sold quickly, buyers paid above asking price, supply was tight and rapidly rising prices hit new all-time highs virtually every month.
“No wonder we’re selling fewer homes”
Overall, it has become increasingly difficult to buy a home in the more expensive and, some say, increasingly unaffordable Las Vegas area, even as southern Nevada saw a record number of resales last year.
Local and national house prices continue to soar from levels a year ago, but the main fuel for last year’s frenzy, rock-bottom mortgage rates, has slipped away .
The average rate on a 30-year home loan was 5.27% on Thursday, down from 2.96% a year earlier, mortgage finance giant Freddie Mac reported.
Mortgage rates are now at their highest level since 2009, according to Freddie Mac chief economist Sam Khater.
With mortgage rates rising and inventory still low, “it’s no wonder we’re selling fewer homes,” Las Vegas Realtors President Brandon Roberts said in a press release.
“A sign that the market remains very competitive”
He added that prices continue to rise, but the rate of growth should “start to slow at some point as these trends continue.”
“At least we had more homes available for sale than we had the month before and the year before,” Roberts said.
Nevertheless, even though prices have never been higher, sales are down overall, and borrowing costs are rising, homes are still selling fast in Southern Nevada.
Of homes that traded hands last month, 87.2% had been on the market for 30 days or less, compared to 82.8% of sales in March and 81.5% of sales in April 2021, Las Vegas reported. Realtors.
Nationally, with “home values appreciating rapidly, interest rates now at their highest levels in more than 10 years and record inventory for sale this spring, these are not the most more favorable for potential buyers, to say the least,” Dan Handy, economic data analyst with listing site Zillow, said recently.
These conditions can be expected to “deplete the pool of buyers, and possibly do so again,” he added, but there are “signs that the market remains very competitive.”