A report released Friday by Las Vegas REALTORS® (LVR) shows local home prices to pass the $ 400,000 mark for the first time as demand continues to outstrip supply.
LVR reported that the median price of existing single-family homes sold in southern Nevada through its Multiple Listing Service (MLS) in July was $ 405,000. This exceeds the previous record of $ 395,000 set in June. The median home price is up 22.7% from $ 330,000 a year ago. The median price of condos and townhouses sold in July was $ 224,250. It’s also an all-time record and up 14.4% from $ 196,000 in July 2020.
LVR Chairman Aldo Martinez said he expected local home prices to exceed $ 400,000 this summer and that “the median affordability for southern Nevada residents may soon be out of range. scope. As we’ve been saying for months, house prices are rising faster than incomes here in Southern Nevada, and that seems unsustainable in the long run. 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 many buyers are turning to condominiums and townhouses, while others “will have to go back to renting because they are no longer able to buy at these prices.”
Martinez, a longtime local real estate agent, said the low supply of homes available for sale continues to push prices up. This presents a challenge for potential buyers – and a rare opportunity for sellers. He said that “it has become evident as we continue to see more homes coming onto the market than we have in the past 10 years. July will be the fifth consecutive month that the inventory of homes put on the market exceeds the previous month, with 4,077 new listings on the market. “
At the end of July, LVR reported 3,007 single-family homes for sale without any offers. Although down 37.4% from the same period last year, Martinez noted that the number of homes listed with no offers actually increased for the fifth month in a row – “with market indicators battling for all its efforts to normalize itself, but consumer consumption continues to remain strong ”. For condos and townhouses, the 662 properties listed with no offers in July were higher than those listed the month before, although that inventory is still down 58.1% from the same period last year.
LVR reported a total of 4,225 existing homes, condos and townhouses sold in July. Compared to a year ago, July sales increased 0.8% for homes and 24.7% for condos and townhouses. So far this year, local home sales are poised to surpass last year’s total and surpass the last post-recession high of 38,153 in 2011.
Martinez mentioned that another phenomenon hitting the Las Vegas market this year has been the luxury market, which has historically seen 300 to 400 units sold for over $ 1 million per year. This year alone, he said 961 such units have been sold, including 928 single-family homes. At this rate, he specified that it would be 1,500 luxury homes sold in 2021, a record. The median market price for luxury goods, or homes sold for over $ 1 million, is currently $ 1,450,000, with the highest sale this year at $ 25 million.
The local housing market has rebounded steadily since it hit its post-recession low in early 2012. Since the start of the pandemic, Martinez has said the local market has been more in line with national trends, with a shortage of available housing. on sale, strong demand and historically low mortgage interest rates, leading to record home prices. To make matters worse, he said builders were not building enough homes to meet demand and homeowners were staying in their homes longer and moving slower than in previous years. Martinez urged buyers to be patient and persistent as more homes are starting to go on sale lately. Although bidding wars are still common and many homes attract multiple bids, he said many are coming back to the market and “are then awarded to the next online buyer.”
An increasing number of buyers are paying cash for homes. In July, LVR reported that 31.7% of all sales of local properties were purchased in cash. This is an increase from 16.8% a year ago, when the housing market was still adjusting at the start of the pandemic. However, this remains well below the March 2013 peak for spot buyers of 59.5%.
With eviction and seizure bans still in effect, the number of sales said to be in difficulty remains close to historically low levels. LVR reported that short sales and foreclosures combined accounted for just 0.3% of all sales of existing local properties in July. This compares to 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 include activity through the end of July 2021. 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 to sell by owners. Other highlights include:
The total value of local real estate transactions tracked by MLS in July was nearly $ 1.7 billion for homes and nearly $ 214 million for condos, high-rise buildings, and homes in row. Compared to a year ago, total sales values in July increased 30.0% for homes and 52.6% for condos and townhouses.
· Homes are selling faster than in previous years. In July, 96.0% of all existing local homes and 94.5% of all existing local condominiums and townhouses sold within 60 days. This compares to a year ago, when 76.7% of all existing local homes and 70.0% of all existing local condos and townhouses sold within 60 days.
Las Vegas REALTORS® (formerly GLVAR) was founded in 1947 and provides its more than 16,500 local members with education, training and political representation. The local representative of the National Association of REALTORS®, LVR is the largest professional organization in southern Nevada. Each member receives the highest level of professional training and must adhere to a strict code of ethics. For more information, visit www.LasVegasRealtor.com.