For release Feb. 7, 2017
Contacts: George McCabe, B&P Doug Bradford, GLVAR
(702) 967-2222 or 325-7358 (702) 784-5038
Southern Nevada Home Prices Rise to Start 2017
GLVAR Housing Statistics for January 2017
LAS VEGAS – The Greater Las Vegas Association of REALTORS® (GLVAR) reported Tuesday that Southern Nevada home prices started 2017 with a relatively rare January jump while the number of homes available for sale continued to shrink.
According to GLVAR, the median price of existing single-family homes sold during January through its Multiple Listing Service (MLS) increased to $238,000. That was up 1.3 percent from December and up 8.7 percent from $219,000 in January 2016. Meanwhile, the median price of local condos and townhomes sold in January was $113,500, up slightly from December, but down 5.4 percent from January 2016.
GLVAR President David J. Tina, a longtime local REALTOR® who became GLVAR’s president on Jan. 1, said it’s rare to see local home prices increase in January, which is usually one of the slowest months of the year for local home prices and sales.
“This is another example of the steady appreciation local homeowners have been enjoying over the past few years,” he said. “It’s good for our housing market and the economy when more homeowners are building equity in their homes.”
Tina noted that the median single-family home price in Southern Nevada two years ago at this time was $200,000. One year ago, it was $219,000, “and now it’s up to $238,000. Historically, that’s a healthy rate of appreciation. Hopefully, these more gradual gains are more sustainable than the big price increases we saw right before and after the recession.”
Tina added that local home sales have also been on the rise. He cited a combination of factors driving home sales, including an improving local economy, home prices that are still lower than in most parts of California and a local population that is growing by about 2 percent per year.
The total number of existing local homes, condos and townhomes sold in January was 2,675, up from 2,348 in January 2016. Compared to one year ago, sales were up 14.1 percent for homes and up 13.2 percent for condos and townhomes. According to GLVAR, a total of 41,720 such properties were sold in 2016. That was more than the 38,577 properties sold during 2015. It was also more than in 2014, but fewer than during each of the previous five years.
As for headwinds facing the housing market, Tina said the tight local housing supply continues to be a concern for buyers, with less than a three-month supply of homes available for sale when a six-month supply is considered to be a balanced market.
By the end of January, GLVAR reported 5,852 single-family homes listed for sale without any sort of offer. That’s down 21.2 percent from one year ago. For condos and townhomes, the 811 properties listed without offers in January represented a 63.4 percent decrease from one year ago.
In recent years, GLVAR has been reporting fewer distressed sales and more traditional home sales, where lenders are not controlling the transaction. That trend continued in January, when 4.2 percent of all local sales were short sales – which occur when lenders allow borrowers to sell a home for less than what they owe on the mortgage. That’s down from 7.0 percent of all sales in January 2016. Another 6.8 percent of all January sales were bank-owned, down from 7.9 percent one year ago.
GLVAR said 29.8 percent of all local properties sold in January were purchased with cash, compared to 31.1 percent in January 2016. That’s well short of the February 2013 peak of 59.5 percent, indicating that cash buyers and investors are still more active in Southern Nevada than in most markets, but that their influence has been declining.
These GLVAR statistics include activity through the end of January 2017. GLVAR distributes statistics each month based on data collected through its MLS, which does not necessarily account for newly constructed homes sold by local builders or homes for sale by owners. Other highlights include:
- The monthly value of local real estate transactions tracked through the MLS during January was more than $582 million for homes and nearly $69 million for condos, high-rise condos and townhomes. Compared to one year ago, total sales volumes in January were up 24.8 percent for homes, but down 0.9 percent for condos and townhomes.
- Homes and condos continued to sell faster than last year at this time. In January, 71.4 percent of all existing local homes and 78.6 percent of all existing local condos and townhomes sold within 60 days. That compares to one year ago, when 62.2 percent of all existing local homes and 58.6 percent of all existing local condos and townhomes sold within 60 days.
About the GLVAR
GLVAR was founded in 1947 and provides its nearly 13,000 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 or www.HomeLasVegas.com