Las Vegas Home Prices Rose 14% In 2017

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Despite a tight housing supply, the Greater Las Vegas Association of REALTORS®(GLVAR) reported that 2017 was one of the best years on record for local home sales and that home prices continued to increase from the previous year.

GLVAR reported that local home prices ended the year up 14 percent from one year ago, with a $267,900 median price for existing single-family homes sold during December through its Multiple Listing Service (MLS). The median price of local condos and townhomes sold in December was $143,000, up 26.5 percent from the same time last year.

According to GLVAR, the 46,598 total properties sold during 2017 make it the third best sales year on record and the best year for existing local home sales since 2011. The 2017 sales total exceeds the 41,720 such properties sold in 2016. Last year’s total ranks just below the 47,685 sales recorded in 2009 and the record of 48,798 existing local properties sold in 2011, when prices were bouncing along a post-recession bottom and investors were dominating the market.

The local housing supply remains at less than two months, when a six-month supply is considered a balanced market. It has been this way for the past year or so, and doesn’t look to change anytime soon.

Homes and condos continued to sell faster than last year at this time. In December, 79.3 percent of all existing local homes and 88.4 percent of all existing local condos and townhomes sold within 60 days. That compares to one year ago, when 71.7 percent of all existing local homes and 76.3 percent of all existing local condos and townhomes sold within 60 days.

By the end of December, GLVAR reported 3,827 single-family homes listed for sale without any sort of offer. That’s down 35.7 percent from one year ago. For condos and townhomes, the 656 properties listed without offers in December represented a 27.9 percent drop from one year ago.

The total number of existing local homes, condos and townhomes sold during December was 3,204. Compared to one year ago, December sales were down 3.5 percent for homes and down 14.8 percent for condos and townhomes.

The total value of local real estate transactions tracked through the MLS during December was nearly $822 million for homes and nearly $91 million for condos, high-rise condos and townhomes. Compared to one year ago, total sales volumes in December were up 10.9 percent for homes and up 9.2 percent for condos and townhomes.

GLVAR reported that 25.7 percent of all local properties sold in December were purchased with cash, compared to 28.7 percent one year ago. That’s less than half of the February 2013 peak of 59.5 percent, indicating that cash buyers and investors are still more active than average, but playing a smaller role in the local housing market.

At the same time, the number of distressed sales continues to decline. GLVAR said short sales and foreclosures combined accounted for 3.6 percent of all existing local home sales in December, compared to 11 percent of all sales one year ago. In 2011, these sales accounted for about three out of every four homes sold in the region.

These GLVAR statistics include activity through the end of December 2017. GLVAR distributes 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.