For release Sept. 10, 2013
GLVAR reports 19-month run of rising home prices, increased inventory
LAS VEGAS – Statistics released today by the Greater Las Vegas Association of REALTORS® (GLVAR) show more existing homes are hitting the market as a 19-month run of rising prices rolls on.
GLVAR President Dave Tina, a longtime local REALTOR®, said existing local home prices have been going up steadily since bottoming out at $118,000 in January of 2012. The median price of a single-family existing home sold in Southern Nevada during August was $182,000. That’s up 1.1 percent from $180,000 in July and up 31.9 percent from $138,000 one year ago. Even with this recent appreciation, Tina added that local home prices are still well below their June 2006 peak of $315,000.
Meanwhile, the median price of local condominiums and townhomes sold in August was $91,500, unchanged from July, but up 33.6 percent from $65,000 one year ago.
“Prices may level out soon, but I don’t think they will drop,” Tina said. “It’s good to see more homes available for sale in the past few months. At the same time, I see some sellers pricing their homes too high for the market and then having to reduce their asking prices. If that continues, homes will stay on the market longer. Overall, we’re seeing a more stable housing market and economy.”
As in the previous two months, the number of local homes listed for sale increased in August. Tina said this is good news for would-be home buyers who have been hard-pressed to find homes to buy. Still, he said the demand for housing in Southern Nevada greatly exceeds the current supply.
Likewise, Tina welcomed another increase in homes sold by “traditional” sellers – as opposed to lenders, who are responsible for the short sales and foreclosures that dominated the market during the Great Recession.
GLVAR has also been reporting fewer 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 August, 25 percent of all existing home sales were short sales, down from 28 percent in July. Another 8 percent of all August sales were bank-owned properties, unchanged from July. The remaining 67 percent of all sales were the traditional type, up from 64 percent in July and as high as that percentage has been in several years.
Tina expects short sales to continue playing a significant part in the local housing market through the end of 2013, when the federal Mortgage Forgiveness Debt Relief Act is set to expire. Barring any further extensions of this deadline, 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 August was 3,539. That’s down from 3,633 in July and down from 3,688 total sales in August 2012. Compared to July, single-family home sales during August increased by 0.1 percent, while sales of condos and townhomes decreased by 13.9 percent. Compared to one year ago, single-family home sales were down 4.3 percent, while condo and townhome sales were down 2.8 percent.
The total number of properties listed for sale on GLVAR’s Multiple Listing Service increased in August, with 14,472 single-family homes listed for sale at the end of the month. That’s up 2.4 percent from 14,133 single-family homes listed for sale at the end of July, but down 15.1 percent from last year. GLVAR reported a total of 3,532 condos and townhomes listed for sale on its MLS in August, up 1.5 percent from 3,479 listed in July, but down 7.8 percent from one year ago.
GLVAR also reported more available homes listed for sale without any sort of pending or contingent offer. By the end of August, GLVAR reported 5,612 single-family homes listed without any sort of offer. That’s up 19.9 percent from 4,681 such homes listed in July and up 41.1 percent from one year ago. For condos and townhomes, the 1,774 properties listed without offers in August represented a 10.3 increase from 1,609 such properties listed in July and a 47.0 percent increase from one year ago.
In August, GLVAR reported that 52.5 percent of all existing local homes sold were purchased with cash. That’s down from 54.5 percent in July and down from the peak of 59.5 percent set in February. Since 2011, cash buyers have accounted for more than half of all existing local home sales.
The median price of bank-owned homes sold in August was $157,000, down from $172,950 in July. The median price of homes sold as part of a short sale in August was $148,000, down from $149,000 in July.
These GLVAR statistics include activity through the end of August 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 August increased by 0.1 percent for homes to more than $649 million. For condos and townhomes, the total value of all sales in August was more than $63 million, down 42.5 percent from July. Compared to one year ago, total sales volumes in August were up 18.6 percent for homes and up 39.5 percent for condos and townhomes.
- In August, 78.8 percent of all local homes and 76.3 percent of all condos and townhomes sold within 60 days. That compares to July, when 77.9 percent of all local homes and 76.3 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.HomeLasVegas.com or www.lasvegasrealtor.com