Residential News » Las Vegas Edition | By Michael Gerrity | December 12, 2022 8:02 AM ET
Seventh Consecutive Monthly market decline since last May
According to Las Vegas Realtors, the recent slowdown in the local housing market continued, with declining home prices and sales.
LVR reported that the median price of existing single-family homes sold in Southern Nevada during November 2022 was $430,990. That's down 2% from October, and down from the all-time record price of $482,000 in May. The median home price is still up 2.6% from $420,000 one year ago.
The median price of local condos and townhomes sold in November was $260,000. That's down 2.3% from the previous month, and down from the all-time record price of $285,000 in May. Condo and townhome prices are still up 8.3% from $240,000 in November 2021.
"Local home prices are starting to look more like they did a year ago. But we're certainly in a different place than we were last year, when prices were soaring and setting records. Of course, as we said at the time, those conditions were not sustainable," said LVR President Brandon Roberts. "The shift we've seen since mortgage interest rates started rising earlier this year has sparked a situation where many buyers are struggling to afford a home, while many homeowners are reluctant to sell and give up the historically low interest rate they're enjoying on their current home."
Despite the recent slowdown, local home prices are still more than triple what they were during their post-recession bottom in January of 2012, when the median single-family home price in Southern Nevada was $118,000.
By the end of November, LVR reported 7,342 single-family homes listed for sale without any sort of offer. That's up 161.7% from the same time last year. Likewise, the 1,633 condos and townhomes listed without offers in November represent a 229.9% jump from one year earlier.
LVR reported a total of 1,983 existing local homes, condos and townhomes sold in November. Compared to November of 2021, sales were down 53.5% for homes and down 46.4% for condos and townhomes.
With more homes available and fewer selling, the sales pace in November equates to more than a four-month supply of properties available for sale - compared to less than a one-month supply at this time last year.
Roberts said this is a significant change from 2021, which 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 LVR 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 November, LVR found that 28.8% of all local property sales were purchased with cash. That's down from 30.1% one year ago, and well below the March 2013 cash buyer peak of 59.5%.
The number of so-called distressed sales remains near historically low levels. LVR reported that short sales and foreclosures combined accounted for 0.5% of all existing local property sales in November. That compares to 0.6% of all sales one year ago, 0.8% two years ago, 2.0% of all sales three years ago, 2.6% four years ago and just under 5% five years ago.
These LVR statistics include activity through the end of November 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: