Why Las Vegas Housing Market Records First Price Decline in 2 Years in June
Las Vegas Housing Market Records First Price Decline in 2 Years in June
Las Vegas Realtors are reporting this week the median price of existing single-family homes sold in Southern Nevada in June 2022 was $480,000. That was down from the all-time record price of $482,000 in May, marking the first time since April of 2020 that local home prices declined from one month to the next. The median price is still up 21.5% from $395,000 one year ago.
Likewise, the median price of local condos and townhomes sold in June decreased to $280,000. That was down 1.8% from the all-time record price of $285,000 in May. Condo and townhome prices are still up 29.6% from $216,000 in June 2021.
LVR President Brandon Roberts said existing local home prices have more than quadrupled since hitting their post-recession bottom in January of 2012, when the median single-family home price in Southern Nevada was $118,000. But now, he sees prices stabilizing as fewer homes are selling, more homes are hitting the market and more sellers are lowering their asking prices.
"Rising mortgage interest rates sparked a slowdown that was bound to happen at some point," Roberts said. "Local home prices can't keep going up at the rate they have been the past few years. More stable prices, along with the increasing number of homes on the market and decreasing number of homes being sold, are providing some relief for potential buyers."
By the end of June, LVR reported 5,746 single-family homes listed for sale without any sort of offer. That's up 134.1% from the same time last year. Likewise, the 1,340 condos and townhomes listed without offers in June represent a 133.0% jump from one year earlier.
LVR reported a total of 3,404 existing local homes, condos and townhomes sold in June. Compared to one year earlier, sales were down 24.7% for homes and down 22.0% for condos and townhomes.
With the increased inventory, June's sales pace equates to just over a two-month supply of properties available for sale. While that's twice as much inventory as past months, Roberts said Southern Nevada is still dealing with a very tight housing supply by historical standards.
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 June, LVR found that 34.2% of all local property sales were purchased with cash. That's up from 30.4% 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 0.5% of all existing local property sales in June. That 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 and 6.3% five years ago.
These LVR statistics include activity through the end of June 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 highlights include:
- The total value of local real estate transactions tracked through the MLS during June was nearly $1.6 billion for homes and more than $218 million for condos, high-rise condos and townhomes. Compared to one year ago, total sales values in June were down 9.9% for homes and down 2.8% for condos and townhomes.
- Homes have been selling faster this year than previous years. In June, 95.4% of all existing local homes and 96.0% of all existing local condos and townhomes sold within 60 days. That compares to one year ago, when 95.4% of all existing local homes and 93.2% of all existing local condos and townhomes sold within 60 days.
