As the pace of sales picks up in March, Las Vegas home prices may be ready to move.
A year ago, competitive bidding for a limited number of homes on the Las Vegas market was pushing prices toward a peak. Since December, prices have barely changed. Now, they are lower.
Early on Thursday morning, Las Vegas Realtors (LVR) released a report indicating that home prices have stabilized over the past three months. That might be an understatement as well. In contrast to the norm, where they frequently fluctuated by $10,000 or $15,000 from month to month, prices have not really changed at all.
The median price of an existing home was $425,000 in March, while the price of a condo or townhome was $260,000.
According to LVR President Lee Barrett, “Southern Nevada was one of the first places to experience this recent shift in the housing market.” I think it makes sense that we might also be among the first to recover from this slowdown.
Since December, our median home price has not changed. In the past, local home prices had been decreasing by one or two percent per month. This could indicate that we are near the end of this cycle.
Since December, condo prices have actually gone up. That could indicate that a new upswing could begin when the housing market eventually moves. The recent market for buyers has been tempered by interest rates. According to LVR’s report, home sales have increased over the past month, decreasing the supply of available homes.
The rate of home sales may be the most accurate indicator of that. Within 60 days, 65.7% of all local homes and 71.7 percent of local condos and townhomes sold in March. This is an improvement from February, when 61% of previously listed homes and 69% of condos and townhomes sold within 60 days.
The LVR report only includes existing homes and not new construction. Half of the prices are higher and half are lower, forming the median price.
With 24.5% of all local property sales being purchased with cash, the percentage of cash buyers continues to decline. that is significantly below the cash buyer peak of 59.5% in 2013 and is down from 27% the month before.
Also, good luck if you’re looking for a “fixer-upper.” The proportion of “distressed” sales remains below 1% of total sales.