LAS VEGAS – A report released Wednesday by Las Vegas REALTORS® (LVR) shows local home prices hold up as families worried about their children’s schooling, college graduates and all the seasonal reasons that cause what LVR executives have called a momentary pause as the market prepares for its final surge before the expected downturn in the holidays begins.
Meanwhile, the local housing supply continues to grow slowly, making August the seventh month in a row that there were more properties available without offers than the previous month.
LVR said the median price of existing single-family homes sold in southern Nevada through its Multiple Listing Service (MLS) in August was $ 405,000. This matches the all-time record set in July. The median price of homes is up 20.9% from $ 335,000 a year ago. The median price of condos and townhouses sold in August was $ 229,000. It’s also an all-time record and up 23.8% from $ 185,000 in August 2020.
“Having set records every month since January, expectations for this continuing trend were high. However, we must always take into account the seasonal conditions that cause breaks in our markets. As stated in our opening remarks, these breaks are normal, at least for now, ”said LVR Chairman Aldo Martinez. “Prices have increased much faster than income. This is not sustainable in the long term. Even with mortgage interest rates near historic lows, it is still difficult for some working-class buyers and families to afford a home. This is causing some buyers to consider alternatives to the single-family residential home and to start looking for more affordable options like condominiums, townhouses, and even rentals.
Martinez, a longtime local real estate agent, said the current pace of sales equates to less than a month’s supply of properties available for sale. However, he added that more housing has come onto the market in recent times, stabilizing what was previously a steadily declining housing supply.
At the end of August, LVR reported 3,256 single-family homes for sale without any offers. Although up from the previous month, this is a decrease of 29.8% from the same period last year. The 687 condos and townhouses listed with no offers in August were down 55.5% from a year ago.
LVR reported a total of 4,098 existing homes, condos and townhouses sold during the month of August. Compared to a year ago, sales in August were up 10.3% for homes and 29.8% for condos and townhouses. So far this year, local home sales are on track to surpass last year’s total.
Regarding other trends, Martinez said the high end of the local real estate market continues to outperform the overall market. At the current pace of sales, he said 2021 is set to be a record year for sales of homes priced over $ 1 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. Homeowners stay longer in their homes and move more slowly than in previous years. Martinez urged buyers to be patient and persistent, noting that more homes have become available in recent months.
At the same time, an increasing number of buyers are paying cash for homes. During the month of August, LVR reported that 47.1% of all sales of local properties were purchased in cash. This is an increase from 17.5% a year ago, when the housing market was still adjusting at the start of the pandemic. While this percentage is higher than it has been in years, it remains below the March 2013 peak of cash 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 August. This compares to 1.2% of all sales one year ago, 2.1% of all sales two years ago, 2.5% three years ago and 6.1% four years ago. years.
These LVR statistics include activity through the end of August 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 through MLS in August was over $ 1.5 billion for homes and nearly $ 225 million for condos, high-rise buildings and townhouses. Compared to a year ago, total sales values in August were up 29.0% for homes and 66.0% for condos and townhouses.
Homes have sold faster this year than in previous years. In August, 96.4% of all existing local homes and 95.8% of all existing local condominiums and townhouses sold within 60 days. This compares to a year ago, when 77.2% of all existing local homes and 73.1% 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.