Housing Markets Heat Up This June in Las Vegas and Southern Nevada

The Las Vegas monorail with the Turnberry Towers

The Las Vegas Monorail near the Turnberry Towers

One vacant housing market is configured you from the warm summer weather. The Greater Las Vegas Association of Realtors (GLVAR), stated that home sales and prices heated up this June when compared to the same time this year.

GLVAR reports show that the median price for an existing single-family home sale in Southern Nevada in June increase to $235,000, according to GLVAR’s Multiple Listing Service (MLS). This amount was a 6.8% increase from last year’s median sales price of $220,000.

Meanwhile, according to GLVAR the median price for townhomes, local condominiums, and high-rise condos, was $115,000, which was the same amount last year.

2016 GLVAR President Scott Beaudry, said of the local housing market appears to be starting off a strong summer which is making many of their members optimistic and hoping that the momentum will continue in the coming months. Beaudry has been saying that GLVAR is concerned about the limited housing supply. The market is about half of what they’d like it to be. However, according to Beaudry, the housing market is moving in a positive direction and are not seeing the volatility that has been experienced in the past.

The total number of existing homes, townhomes, and condominiums sold in June was 3,957 which was an increase from the 3,693 sold in June of 2015, according to GLVAR. When compared to June of last year there was a 6.3 percent increase in home sales and an 11.30 percent increase in townhomes and condos sales.

According to Beaudry, local home sales in the first half of 2016 outpaced 2015. In 2015, GLVAR reported 38,578 single family homes, townhomes, condominiums, and high-rise condo sales during that period. This was more than the sales reported for 2014 however it is fewer sales than had been reported the previous five years.

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The Trump Tower’s on the Las Vegas Strip

At the current rate of sales, Beaudry says Southern Nevada has less than a three-month supply of homes available for sale. In order to have a balanced market, there must be a six-month supply of homes.

GLVAR is tracking the decline in distressed home sales in the increase in traditional homes, where lenders do not have control of the transaction area in June, only 4.4 percent of local home sales were short sales, where the banks allow a homeowner to sell their home for less than the amount of the mortgage owed. One year ago, that number was at 6.7 percent. Of the remaining June sales, 5.9 percent were bank-owned, which is down from 7.6 percent last year.

According to Beaudry, short sales may continue to be attractive to some homeowners this year, although they make up a smaller percentage of local home sales. Since Congress extended the Mortgage Forgiveness Debt Relief Act of 2007, which is why some homeowners may choose to sell short this year. If Congress had not extended this tax break, which helps distressed homeowners, any amount of money written off by the bank when making an agreement for short sale would be taxable to the seller when they file their federal income taxes.

According to GLVAR, 27 percent of the property purchased in June were bought with cash, this is down from the 28.4 percent from last year. The percentage of cash buyers and stabilize over the last few months. However, it’s still less than half of the 59.5 percent peak that was reached in February 2013. This suggests that although investors and cash buyers remain active in Southern Nevada, their influence is waning.

GLVAR statistics include activity through the end of June. GLVAR distributes these statistics each month. The statistics used data from GLVAR’s MLS, which does not take into account for sale by owner sales and newly constructed homes sold by local builders.

Other Market Highlights

  • The value of monthly sales that were tracked through the MLS in June was over $898 million for home sales and over $87 million for condos, townhomes, and Las Vegas high-rise condos. These numbers are for homes when compared to last year’s figures, but down for townhomes and condos.
  • Homes were sold faster in June. 74.2 percent of existing home sales and 71.2 percent of existing townhome and condo sales, were conducted within 60 days of the original listing. Last year, 68.6 percent of existing homes and 66.6 percent of existing townhomes and condos all within 60 days.

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