The average asking price for a house sold in Southern Nevada is now double what it was at the time of the market low in 2012, according to the latest data.
According to the Report from the Greater Las Vegas Association of Realtors, released on Friday, the average asking price for a house is $235,000. The average asking price is an increase of 2.5% from the prices in May ($229,250) or up 6% from June when the Price was set at $220,000.
What this shows, is the recovery of the local housing market that hit rock bottom in January 2012, when the average asking price for a house was $118,000. In comparisons with June’s prices, this is a 99.1% recovery.
Las Vegas, Nevada Average Housing Prices from July 2015- June 2016
GLVAR’s Multiple Listing Service reported that it had sold 3,248 single family homes, this is an increase of 19.9% from the numbers as they were reported in May, 2,708 homes were sold. Sales then went on to increase by 6.3 % in June 2015. The sales of 2016 are currently 8% ahead of those in 2015.
“What this means is that the City of Las Vegas will Recover to First Position,” said an enthusiastic GLVAR President Scott Beaudry, “Vegas has a history of being hit hardest, But we recover, and it took as long as we thought it would.
Southern Nevada, on the other hand, is still quite far from the high it saw in June 2006 when average prices were at $315,000. According to the latest projections from CoreLogic, a property analytics firm, the prices can be expected to rise higher. Their projections predict the prices will increase to about 12% from 2016 to 2017.
The rising prices continue to drop the rates of negative equity across the Las Vegas Housing Market. During the first quarter, It fell another 20 % for the first time since the housing crisis. The Peak of Las Vegas’ negative equity was in early 2010 when it hit around 77.6%.
Beaudry stated that predictions allowed for this mark to drop to 10% at some point in 2017 which will be a great time for the housing market to increase their sales more than ever. At this period they will be limited by a three-month market supply.
“We are not quite there,” said Beaudry, “We are still looking at 20% of the properties still submerged. But these price gains will help us to move that position along. Once this 20% is retrieved, we will have a better idea of what stability looks like. But if it goes all berserk then, we will have a problem.”
Beaudry also commented that was no cause for concern from prices rising too rapidly too quickly which is because, before the escalation, they had been pretty stable for over half a year.
“The reason the prices are rising is due to the lack of inventory,” Beaudry stated, “there’s not enough to go around when this happens, supply and demand drive the values higher. Once we get more properties on the market, that increase will slow down.”
Real Estate Supply Level Down
According to Beaudry, the current inventory is at 2.75 months as opposed to the normal supply level of 6 months. As homeowners gain equity on their homes, they will probably start to sell, and this will push the supply level higher.
“The Homeowners have been waiting to sell; they would have hurt their credit if they had agreed to a short sale.”
“There was a half a year stretch where nothing went up; this is what keeps me thinking things will not go all topsy-turvy. I just don’t believe it is in the range of the bubble.”
In June, only 236 of the condos, homes and townhomes were bank owned sales, this is 5% which is considerably less than in May when it was at 6.1% or a year ago when it was at 7.6. Another 4.4% of the sales or 176 homes were short sales, meaning the owner still owed more on the mortgage than the worth of the property which was down from the figure a year ago, 6.7% — according to GLVAR statistics.
The average price for the single family homes sold through foreclosure sales was $175,000. For those sold through short sales, the price was $187,000 — according to GLVAR reports.
In the townhome and condominium market, the number of sales in June was 709, which is up 10.6 percent from the numbers in May and 11.3% over the figures in June 2015. The average price for a house sale in May was 115,000, representing a 2.5% drop since May.
Home sold much faster in June; it only took 60 days to sell 71.2% of all existing condos and townhomes and 74.2% of all local homes. That contrasts with the figures from last year when 68.6% of homes and only 566.6 % of all townhomes and Las Vegas high rise condos for sale were sold in the same amount of time — according to figures by the GLVAR.