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Las Vegas Home Prices Still on the Rise

While home prices across the U.S. have been cooling, Las Vegas home prices continue to inch up with the median price of single-family homes reaching $202,500 in September. That’s a 12.5% increase from a year prior.

Inventory levels have risen slightly, but this isn’t necessarily a bad thing. Following the recession, Las Vegas saw the beginning of an investor frenzy as cash buyers rushed in to purchase rental properties at too-good-to-be-true prices. Properties were selling the minute they hit the market, and Realtors often found themselves in bidding wars amongst several investors. The competition between investors has been a contributing factor in the increase of home values in the valley. As prices continue to increase, investors are beginning to ease off and we’re seeing more owner-occupied sales. The GLVAR reports that 34.3% of properties sold in September were cash purchases, far from the 59.5% peak in February 2013. So although homes are staying on the market a bit longer, local experts believe we’re entering a more stable time where inventory and pricing are balancing out.

It’s no secret that Las Vegas is still one of the leading metro areas for short sales and distressed sales, however, we’re seeing continued improvement in that aspect too. Just 10.4% of sales in September were short sales, nearly a two-year low.

Although Las Vegas is still a long way off from it’s 2006 median home price of $315,000, we’ve seen great gains since the recession and are optimistic about the direction of the housing market. If you’re considering a career in Las Vegas real estate, contact our office to learn more about what it’s like to be part of the Elite Realty team!

Sources:
http://www.lasvegasrealtor.com/glvar-reports-local-home-prices-inching-up-as-fewer-homes-are-selling-sept2014/
http://www.8newsnow.com/story/26619851/home-price-hikes-slow-down-in-las-vegas
http://www.reviewjournal.com/business/economy/report-las-vegas-home-prices-sales-slip-slightly