Las Vegas Home Prices Slip for Second Consecutive Month in July

Las Vegas Home Prices Slip for Second Consecutive Month in July

Residential News » Las Vegas Edition | By WPJ Staff | August 9, 2022 8:50 AM ET

Las Vegas Realtors are reporting this week that local home prices dipped for the second 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 during July was $465,000. That's down from the all-time record price of $482,000 in May and down 3.1% from June. The median home price is still up 14.8% from $405,000 one year ago.

Likewise, the median price of local condos and townhomes sold in July decreased to $271,800. That's down 2.9% from the previous month and down from the all-time record price of $285,000 in May. Condo and townhome prices are still up 21.2% from $224,250 in July 2021.

LVR President Brandon Roberts said existing local home 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. But 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.

"We're definitely seeing a shift in the housing market," Roberts said. "We haven't seen prices slow down like this in several years. And we haven't had this many homes available for sale since the summer of 2019. This is encouraging news for people looking to buy a home - although rising interest rates and today's prices still present challenges for many potential buyers."

By the end of July, LVR reported 7,331 single-family homes listed for sale without any sort of offer. That's up 143.8% from the same time last year. Likewise, the 1,618 condos and townhomes listed without offers in July represent a 144.4% jump from one year earlier.

LVR reported a total of 2,672 existing local homes, condos and townhomes sold in July. Compared to one year earlier, sales were down 38.4% for homes and down 30.6% for condos and townhomes.

With the increased inventory, July's sales pace equates to more than a three-month supply of properties available for sale - roughly three times the supply from earlier this year.

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 July, LVR found that 32.1% of all local property sales were purchased with cash. That's up from 31.7% one year ago. While that percentage has been increasing this year, it's still 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 July. That compares to 0.3% one year ago, 1.2% two years ago, 2.0% three years ago, 2.9% four years ago and 6.4% five years ago.

These LVR statistics include activity through the end of July 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 market highlights include:

  • The total value of local real estate transactions tracked through the MLS during July was more than $1.1 billion for homes and nearly $171 million for condos, high-rise condos and townhomes. Compared to one year ago, total sales values in July were down 33.1% for homes and down 20.2% for condos and townhomes.
  • Homes have generally been selling faster this year than previous years. In July, 95.2% of all existing local homes and 95.7% of all existing local condos and townhomes sold within 60 days. That compares to one year ago, when 96.0% of all homes and 94.5% of all condos and townhomes sold within 60 days.

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