Newsroom ArticleFor release May 8, 2013 Click here to download the April 2013 Housing Statistics!
Local home prices rise again, according to GLVAR report
LAS VEGAS – Statistics released today by the Greater Las Vegas Association of REALTORS® (GLVAR) show existing home prices in Southern Nevada continue to increase and are now nearly 31 percent higher than they were one year ago.
“Like most homeowners, REALTORS® are glad to see home prices appreciating each month,” said 2013 GLVAR President Dave Tina, a longtime local REALTOR®. “At the same time, we’re starting to hear some people question whether these rising prices are sustainable. A few people have even warned about another housing bubble, which I think is unlikely for a variety of reasons.”
“For one thing,” Tina said, “median home prices are just over half-way back to the $315,000 peak we hit in 2006, and arguably below where they should be had they never gone up and down so fast. Secondly, I don’t see many people walking away from the homes they bought during this housing market rebound, since about half of all our local buyers these past few years have been paying cash for their homes. Finally, the local job market and overall economy keep improving. When you add it all up, I still see room for home prices to go up, though probably not at the rate they have this past year.”
Though the number of local homes listed for sale increased slightly in April, Tina said the bigger issue facing the local housing market is the continued shortage of homes to sell.
With prices rising and about a five-week supply of homes available to sell, GLVAR has been reporting more homes sold by “traditional” sellers – as opposed to lenders, who are responsible for the short sales and foreclosures that dominated the market in recent years. In fact, for the first time in years, Tina said “traditional” sales have accounted for more than half of all local home sales so far in 2013.
GLVAR reported the median price of single-family homes sold in April was $167,000, up 3.7 percent from $161,000 in March and up 30.6 percent from $127,900 one year ago. Meanwhile, the median price of local condominiums and townhomes sold in April was $85,000, up 6.1 percent from $80,150 in March and up 41.9 percent from $59,900 one year ago.
Another trend is the decline in foreclosures and short sales – which occur when a lender agrees to sell a home for less than what the borrower owes on the mortgage. In April, 32.5 percent of all existing local home sales were short sales, down from 33.3 percent in March. Another 10.0 percent of all sales were bank-owned properties, down from 11.2 percent of all sales in March. The remaining 57.5 percent of all sales were the traditional type, which was up from 55.5 percent in March.
Tina expects short sales to remain relatively strong this year before tapering off in 2014, primarily because Congress extended the Mortgage Forgiveness Debt Relief Act by one year to Dec. 31, 2013. Barring any further extensions, any amount of money a bank writes off in agreeing to sell a home as part of a short sale starting in 2014 may become taxable when sellers file their income taxes.
GLVAR said the total number of existing local homes, condominiums and townhomes sold in April was 3,789. That’s up from 3,642 in March, but down from 3,924 total sales in April 2012. Compared to March, single-family home sales during April increased by 3.2 percent, while sales of condos and townhomes increased by 7.6 percent. Compared to one year ago, single-family home sales were down 4.1 percent, while condo and townhome sales were down 0.5 percent.
The total number of properties listed for sale on GLVAR’s Multiple Listing Service increased in April, with 13,881 single-family homes listed for sale at the end of the month. That’s up 1.4 percent from 13,693 single-family homes listed for sale at the end of March, but down 22.4 percent from one year ago. GLVAR reported a total of 3,485 condos and townhomes listed for sale on its MLS in April, up 1.0 percent from 3,451 listed in March, but still down 9.2 percent from one year ago.
As for available homes listed for sale without any sort of pending or contingent offer by the end of April, GLVAR reported 3,161 single-family homes listed without any sort of offer. That’s up 11.3 percent from 2,839 such homes listed in March, but still down 24.1 percent from one year ago. For condos and townhomes, the 1,261 properties listed without offers in April represented a 3.4 percent increase from 1,219 such properties in March, and an 8.6 percent increase from one year ago.
In April, GLVAR reported that 59.3 percent of all existing local homes sold were purchased with cash. That’s up from 57.5 percent in March and approaching the peak of 59.5 percent in February.
GLVAR reported that the median price of bank-owned single-family homes sold in April was $152,000, up from $139,500 in March. The median price of single-family homes sold as part of a short sale in April was $140,000, up from $135,000 in March.
These GLVAR statistics include activity through the end of April 2013. 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 for sale by owners. Other highlights include:
- The monthly value of local real estate transactions tracked through the MLS during April increased by 8.9 percent for homes to nearly $639 million. For condos and townhomes, the total value of all sales in April was more than $99 million, up 14.2 percent from March. Compared to one year ago, total sales volumes in April were up 25.8 percent for homes and up 75.1 percent for condos and townhomes.
- In April, 73.7 percent of all homes and 75.3 percent of all condos and townhomes sold within 60 days. That compares to March, when 68.3 percent of all homes and 71.9 percent of all condos and townhomes sold within 60 days.
About the GLVAR
GLVAR was founded in 1947 and provides its more than 11,000 local members with education, training and political representation. The local representative of the National Association of REALTORS®, GLVAR is the largest professional organization in Southern Nevada. Each GLVAR member receives the highest level of professional training and must abide by a strict code of ethics. For more information, visit www.lasvegasrealtor.com.