Las Vegas Single Family Home Sales in May 2018
Classic supply and demand continues to rule the Las Vegas home market. Inventory is low, demand is high so home prices continue to creep higher. In May, the Greater Las Vegas Association of REALTORS® MLS shows 3142 homes sold, down 7% from a year earlier, but the median price continues its rise, now $294,000. That is the highest median price since August 2007. Just six years ago, in May 2012, the median price of the 3330 homes sold was $129,000, so prices have risen 129% in six years. Back then, 48% of the homes were sold to cash buyers! Last month, only 19% of homes were purchased with cash.
In fact, looking back six years gives a great view of how far the market has come. In May 2012, 65% of the sales were either short sales or repos. This May, only 3% of sales were short sales or repos. Back then, inventory was huge, so a buyer had several homes to see with new listings hitting the market daily. Today, homeowners are staying in their homes while new residents contnue to move in from California, Texas, Florida and other areas. Therefore, resale homes are in short supply and demand for new construction is increasing.
In April 2018, new home sales rose 22% in April over last year with a median price of just less than $375,000. Builders sold 9400 new homes in 2017 and have closed over 3000 homes through April of this year. Although these seem to be giddy highs, they pale when compared to the boom years like 2005, when over 39,000 new homes were sold.