LAS VEGAS — A report released Wednesday by Las Vegas REALTORS® (LVR) offers further evidence that the local real estate market is cooling after a long string of record prices and strong sales.
LVR said the median price of existing single-family homes sold in Southern Nevada through its Multiple Listings Service (MLS) in June was $480,000. That was down from the all-time high price of $482,000 in May, marking the first time since April 2020 that local home prices have fallen month over month. The median price is still up 21.5% from $395,000 a year ago.
Similarly, the median price of local condos and townhouses sold in June fell to $280,000. That was down 1.8% from the all-time high price of $285,000 in May. Condo and townhouse prices are still up 29.6% from $216,000 in June 2021.
LVR President Brandon Roberts, a longtime local realtor, said prices for existing local homes had more than quadrupled since hitting their post-recession low in January 2012, when the median price of single-family homes in southern Nevada was $118,000. But now he sees prices stabilizing as fewer homes sell, more homes come on the market and more sellers lower their asking prices.
“Rising mortgage interest rates triggered a downturn that was bound to happen at some point,” Roberts said. “Local house prices cannot continue to rise at the rate they have seen in recent years. More stable prices, along with the increasing number of homes on the market and the decreasing number of homes sold, provide relief to potential buyers.
At the end of June, LVR reported 5,746 single-family homes listed for sale without any sort of offer. This is an increase of 134.1% compared to the same period last year. Similarly, the 1,340 condos and townhouses listed with no offers in June represent a jump of 133.0% from a year earlier.
LVR reported a total of 3,404 local existing homes, condos and townhouses sold in June. Compared to a year earlier, sales fell 24.7% for houses and 22.0% for condominiums and townhouses.
With the increase in inventory, the pace of sales in June is equivalent to just over two months’ supply of properties available for sale. Although that’s twice as much inventory as previous months, Roberts said southern Nevada still faces a very tight housing supply by historical standards.
So far this year, local existing 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, townhouses and other residential properties sold. It was the first time the association has reported more than 50,000 local properties changing hands in a year, and it surpassed the previous record set in 2011 with nearly 2,000 sales. In comparison, LVR recorded 41,155 total sales in 2020.
In June, LVR found that 34.2% of all local property sales were purchased with cash. That’s up from 30.4% a year ago. Although this percentage has increased this year, it is still below the March 2013 peak of cash buyers of 59.5%.
Helped by restrictions on evictions and foreclosures during the pandemic, the number of so-called distressed sales remains near historic lows. LVR said short sales and foreclosures combined accounted for 0.5% of all existing local property sales in June. This compares to 0.7% one year ago, 2.2% of all sales two years ago, 2.2% of all sales three years ago, 2.6% four years ago years and 6.3% five years ago.
These LVR stats include activity through the end of June 2022. LVR distributes stats each month based on data collected through its MLS, which does not account for all newly built homes sold by local builders or homes at sell by owners. Other highlights include:
The total value of local real estate transactions tracked by MLS in June was nearly $1.6 billion for homes and more than $218 million for condos, condominiums and townhouses. Compared to a year ago, the total value of sales in June was down 9.9% for homes and 2.8% for condominiums and townhouses.
Homes are selling faster this year than in previous years. In June, 95.4% of all existing local homes and 96.0% of all existing local condos and townhouses were sold within 60 days. That compares to a year ago, when 95.4% of all existing local homes and 93.2% of all existing local condos and townhouses sold within 60 days.
Las Vegas REALTORS® (formerly known as GLVAR) was founded in 1947 and provides its more than 17,000 local members with education, training and political representation. Local representative of the National Association of REALTORS®, LVR is Southern Nevada’s largest professional organization. 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.