December Home Prices Down Slightly in Las Vegas

Posted on by & filed under Nevada by the Numbers Blog.

Sales and Prices Up Year Over Year

The Greater Las Vegas Association of REALTORS® (GLVAR) reported today that local home prices come down slightly from las month, as typically occurs this time of year.

Still, the median price of existing single-family homes sold during December through its Multiple Listing Service (MLS) was $235,000. While that is a $5,000 drop from November 2016, it is still an increase of 8.3 percent from December 2015. Meanwhile, the median price of local condos and townhomes sold in December was $113,000, down 4.2 percent from the same month one year ago.

Home sales increased in December by 4.6 percent compared to the previous month and by 1.3 percent compared to the previous year. Condo and townhome sales were even stronger, increasing by 18.9 percent from the previous month and by 12.4 percent from the previous year.

The total number of existing local homes, condos and townhomes sold in December was 3,402, up from 3,290 in December 2015. According to GLVAR, a total of 41,720 such properties were sold in 2016. That was more than the 38,577 properties sold during 2015. It was also more than in 2014, but fewer than during each of the previous five years.

Local housing inventory continued to shrink, with just over a two-month supply of homes available for sale when a six-month supply is considered to be a balanced market. By the end of December, GLVAR reported 5,951 single-family homes listed for sale without any sort of offer. That’s down 17.6 percent from one year ago. For condos and townhomes, the 910 properties listed without offers in December represented a 56.5 percent decrease from one year ago.

In the past few years, GLVAR has been reporting fewer distressed sales and more traditional home sales, where lenders are not controlling the transaction. That continued in December, when 4.8 percent of all local sales were short sales – which occur when lenders allow borrowers to sell a home for less than what they owe on the mortgage. That’s down from 6.8 percent of all sales one year ago. Another 6.2 percent of all December sales were bank-owned, down from 6.9 percent one year ago.

GLVAR said 28.7 percent of all local properties sold in December were purchased with cash, up from 28.4 percent one year ago. That’s still well short of the February 2013 peak of 59.5 percent, indicating that cash buyers and investors are still more active in Southern Nevada than in most markets, but that their influence has been leveling off.

These GLVAR statistics include activity through the end of December 2016. GLVAR distributes such statistics each month based on data collected through its MLS, which does not necessarily account for newly constructed homes sold by local builders or homes for sale by owners.