Real Estate

Las Vegas Home Prices Near $475K High, Sales Drop 12.8%

Las Vegas home prices hit $475,000 in June, just $7,000 below record, as sales drop 12.8% since May.

By Tal Alexander

7/10, 13:03 EDT

Key Takeaway

  • Las Vegas home prices rose 7.7% year-over-year in June to $475,000, nearing the all-time high of May 2022.
  • Home sales fell 12.8% since May, with unsold listings up 11.8%, and condo/townhome listings up 47%.
  • Despite slowing sales, Las Vegas outperforms the national market with faster home sales and increased cash transactions at 26.6%.

Las Vegas Housing Market Heats Up

Las Vegas' housing market is experiencing a significant surge, with home prices nearing record highs despite a slowdown in sales. According to the Las Vegas Review-Journal, the price of a typical single-family home in the greater Las Vegas area rose by 7.7 percent year-over-year in June, reaching $475,000. This figure is just $7,000 shy of the all-time high set in May 2022. However, since May, home sales have fallen by 12.8 percent, indicating a cooling in buyer activity. This trend is further evidenced by the increasing number of homes sitting on the market without offers, which rose by 11.8 percent from a year earlier.

Slowing Sales Amid Rising Prices

The Las Vegas housing market's dynamics are complex, with rising prices juxtaposed against slowing sales. As of the end of June, 4,114 homes were listed without any offers, marking an 11.8 percent increase from the previous year. Condos and townhomes are facing even longer wait times, with 1,367 units listed without offers, a 47 percent jump from a year ago. Despite these challenges, Las Vegas is outperforming the national real estate market in some respects. Merri Perry, president of Las Vegas Realtors, noted that while national home sales are approaching record lows, Southern Nevada has seen more home sales this year compared to last year, and homes are selling faster than they were at the same time last year.

Cash Transactions and Affordable Housing Crisis

Cash transactions remain a significant part of the Las Vegas housing market, with 26.6 percent of all local property sales made in cash, up from 25.1 percent a year earlier. However, this is still far from the record 59.5 percent high for cash deals in 2013. The city is also grappling with an affordable housing crisis, with Nevada short more than 78,000 affordable rental units for extremely low-income renters, according to the National Low Income Housing Coalition. This shortage underscores the broader challenges facing the housing market, particularly for those in lower income brackets.

National Context and Mortgage Rates

Nationally, the housing market is also experiencing significant changes. Redfin reported that typical home prices hit record highs at the end of June. Meanwhile, mortgage rates have been fluctuating, standing above 7 percent at the end of June, up from a three-month low of 6.9 percent at the start of the month, but down from a five-month high of 7.5 percent in early May. These high mortgage rates are likely contributing to the slowdown in home sales, as higher borrowing costs make home purchases less affordable for many buyers.

My Perspective on the Market

The Las Vegas housing market's current state reflects broader national trends but also highlights unique local dynamics. The near-record high home prices indicate strong demand and limited supply, yet the slowdown in sales and increasing number of homes without offers suggest that affordability is becoming a significant issue. The rise in cash transactions points to a market where investors and wealthier buyers are more active, potentially sidelining first-time and lower-income buyers. The affordable housing crisis further exacerbates these challenges, highlighting the need for targeted policy interventions to increase the supply of affordable units.

Street Views

  • Merri Perry, President of Las Vegas Realtors (Cautiously Optimistic on the Las Vegas housing market):

    "Home sales have been down nationally and approaching some of the lowest levels on record. Here in Southern Nevada, we’ve been selling more homes this year than we did last year."
    "And unlike much of the nation, homes here have actually been selling faster than they were at the same time last year. At the same time, we’re seeing more homes available for sale, which is good news."