Las Vegas Faces Housing Shortage, Driving Up Prices
In April, local home prices in the greater Las Vegas area continued to climb amid what leaders of the Greater Las Vegas Association of Realtors (GLVAR) are now calling a housing shortage.
GLVAR reported today that the median price of existing single-family homes sold during April 2017 through its Multiple Listing Service (MLS) increased to $249,000. That was up 2.9 percent from March and up 12.9 percent from April 2016. Meanwhile, the median price of local condos and townhomes sold in April was $130,000, up 5.7 percent from March and up 8.4 percent from April 2016.
GLVAR President David J. Tina said this steady appreciation is welcome news for local homeowners and the housing market. The same cannot be said for the shrinking supply of homes on the market. At the current sales pace, he said Southern Nevada now has less than a two-month supply of homes available for sale. A six-month supply is considered to be a balanced market.
"Our housing supply has been tight for a couple of years, but now it's getting to the point where it's fair to call this a housing shortage," said Tina. "As experts from the NAR have been saying recently, this has become a concern across the country. Most metro areas are now facing a housing shortage. But this is a bigger issue here in Southern Nevada, where our population and the demand for housing is growing faster than most places."
By the end of April, GLVAR reported 5,083 single-family homes listed for sale without any sort of offer. That's down 30.9 percent from one year ago. For condos and townhomes, the 639 properties listed without offers in April represented a 71.4 percent drop from one year ago.
Like prices, local home sales have also been increasing this year. The total number of existing local homes, condos and townhomes sold in April was 3,529, up from 3,518 in April 2016. Compared to one year ago, sales were up 1.7 percent for homes, but down 5.3 percent for condos and townhomes.
According to GLVAR, local home sales in 2017 continue to outpace 2016, when 41,720 total properties were sold in Southern Nevada. That was more than the 38,577 properties sold during 2015. It was also more total sales than in 2014, but fewer than each year from 2009 through 2013.
GLVAR said 27.5 percent of all local properties sold in April were purchased with cash, down from 28.1 percent in April 2016. That's well short of the February 2013 peak of 59.5 percent, indicating that cash buyers and investors are still more active in Southern Nevada than in most markets, but that their influence has been waning.
For several years, GLVAR has been reporting fewer distressed sales and more traditional home sales, where lenders are not controlling the transaction. That trend continued in April, when 4.4 percent of all local sales were short sales - which occur when lenders allow borrowers to sell a home for less than what they owe on the mortgage. That compares to 4.5 percent of all sales in April 2016. Another 4.0 percent of all April sales were bank-owned, down from 7.1 percent one year ago. Other market highlights include:
- The total value of local real estate transactions tracked through the MLS during April was nearly $821 million for homes and more than $93 million for condos, high-rise condos and townhomes. Compared to one year ago, total sales volumes in April were up 15.0 percent for homes, but down 19.7 percent for condos and townhomes.
- Homes and condos continued to sell faster than last year at this time. In April, 79.0 percent of all existing local homes and 86.4 percent of all existing local condos and townhomes sold within 60 days. That compares to one year ago, when 70.8 percent of all existing local homes and 68.0 percent of all existing local condos and townhomes sold within 60 days.