Las Vegas Home Prices Dip in August, Third Consecutive Month

Las Vegas Home Prices Dip in August, Third Consecutive Month

Residential News » Las Vegas Edition | By David Barley | September 7, 2022 8:02 AM ET

According to Las Vegas Realtors, local area home prices declined for the third straight month, with fewer homes selling and more available for sale.

LVR reported that the median price of existing single-family homes sold in Southern Nevada through its Multiple Listing Service (MLS) during August was $450,000. That's down from the all-time record price of $482,000 in May and down 3.2% from July. The median home price is still up 11.1% from $405,000 one year ago.

Likewise, the median price of local condos and townhomes sold in August decreased to $264,900. That's down 2.5% from the previous month and down from the all-time record price of $285,000 in May. Condo and townhome prices are still up 15.7% from $229,000 in August 2021.

LVR President Brandon Roberts, said existing local home prices are "slowly giving back some of the big gains we saw over the last few years." Prices are still nearly four times higher than during their post-recession bottom in January of 2012, when the median single-family home price in Southern Nevada was $118,000. Since mortgage interest rates started rising in recent months, he said prices have been stabilizing, fewer homes have been selling, more homes are hitting the market and more sellers are lowering their asking prices.

"Even though home prices have leveled off lately, they're still up substantially from last year. When you combine that with rising mortgage interest rates and inflation, it's no surprise to see some potential buyers sitting on the sidelines for now," Roberts said. "At least buyers have more homes to choose from today. It has been about three years since we had this many homes available for sale here."

By the end of August, LVR reported 7,997 single-family homes listed for sale without any sort of offer. That's up 145.6% from the same time last year. Likewise, the 1,812 condos and townhomes listed without offers in August represent a 163.8% jump from one year earlier.

LVR reported a total of 2,613 existing local homes, condos and townhomes sold in August. Compared to one year earlier, sales were down 37.6% for homes and down 31.2% for condos and townhomes.

With more homes available and fewer selling, the sales pace in August equates to more than a three-month supply of properties available for sale - more than tripling the supply from one year ago.

So far this year, existing local home sales are down from the same time in 2021. According to LVR, 2021 was a record year for existing home sales in Southern Nevada, with 50,010 homes, condos, townhomes and other residential properties selling. That was the first time the association reported more than 50,000 local properties changing hands in a year, and it topped the previous record set in 2011 by nearly 2,000 sales. By comparison, LVR reported 41,155 total sales during 2020.

During August, LVR found that 27.4% of all local property sales were purchased with cash. That's down from one year ago and well below the March 2013 cash buyer peak of 59.5%.

Aided by restrictions on evictions and foreclosures during the pandemic, the number of so-called distressed sales remains near historically low levels. LVR reported that short sales and foreclosures combined accounted for 0.2% of all existing local property sales in August. That compares to 0.3% one year ago, 1.2% of all sales two years ago, 2.1% of all sales three years ago, 2.5% four years ago and 6.1% five years ago.

These LVR statistics include activity through the end of August 2022. LVR distributes statistics each month based on data collected through its MLS, which does not account for all newly constructed homes sold by local builders or homes for sale by owners.

Other Las Vegas market highlights include:

  • The total value of local real estate transactions tracked through the MLS during August was nearly $1.1 billion for homes and more than $172 million for condos, high-rise condos and townhomes. Compared to one year ago, total sales values in August were down 29.7% for homes and down 23.5% for condos and townhomes.
  • In August, 92.6% of all existing local homes and 93.6% of all existing local condos and townhomes sold within 60 days. That compares to one year ago, when 96.4% of all existing local homes and 95.8% of all existing local condos and townhomes sold within 60 days.

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