Home prices in Las Vegas topped $ 400,000 on the resale market for the first time last month, raising concerns that many residents are being charged as home values continue to rise to new levels. historic peaks.
The median selling price of previously owned single-family homes – the bulk of the market – was $ 405,000 in July, up 2.5% from the previous record set in June and 22.7% from the previous high. through July of last year, according to a new report. of the Las Vegas Realtors Trade Association.
Buyers bought 3,352 homes last month, down 5.4% from June, but up 0.8% from the July 2020 sales tally.
Meanwhile, the stock of available housing soared from the previous month, but remained broadly weak.
A total of 3,007 homes were on the market without offers at the end of July, up 22.5% from June but down 37.4% from the previous year, according to the association.
LVR reports data from its high-resale listing service.
The southern Nevada real estate market has seen record prices and rapid sales for months, in large part thanks to cheap borrowing costs that have allowed buyers to stretch their budgets. Home hunters have flooded properties with offers and consistently paid asking price, and home builders have steadily raised prices, put buyers on waiting lists and accepted bids for lots, multiple sources said. .
Besides low borrowing costs, the market has also been fueled by an influx of buyers from more expensive markets.
Las Vegas saw more out-of-state shoppers than usual during the pandemic, especially from California, as many people who work remotely moved from high-priced areas to live in larger homes in communities. cheaper areas such as southern Nevada.
Las Vegas Realtors President Aldo Martinez said in a press release that he expected local home prices to exceed $ 400,000 this summer and that “the median affordable price for southerners of Nevada may soon be out of reach. “
Home prices are rising faster than incomes in the Las Vegas area, and that “seems unsustainable in the long run,” said Martinez, branch manager at Berkshire Hathaway HomeServices Nevada Properties.
“Even with mortgage interest rates near historic lows, we know it is becoming difficult for first-time buyers and working-class families to afford a home,” he said.
He added that many buyers are turning to condos and townhouses, which tend to be cheaper than single-family homes, while others will have to rent “because they can’t buy at those prices anymore.” .
Realty One Group agent Michelle Hardy-Rodriguez recently said she is working with many first-time buyers. Many of them work in the Las Vegas tourism industry, and many are out of the market, she said.
“They can’t compete with the rising costs,” she said.