Las Vegas is no longer the fastest-growing state when it comes to home prices as it’s being nudged by the state of Phoenix. Over the last year, Las Vegas home prices went 5.5% up from the previous year, compared to a nationwide growth of 3.1%. According to the the index released by the S&P CoreLogic Case-Shiller, Las Vegas topped the list for 12 consecutive months. Even though prices are going up yet the overall growth is slowing down, in statements by Mathew Speakman, An economist at Zillow he mentions that
“nationally, housing demand remains strong amid rising wages and as mortgage rates keep falling amid growing economic uncertainty, buyers have become unwilling to pay escalating prices for the relatively low inventory of homes that are on the market and are making sellers wait or drop their prices.”
As of last July, there were 7,800 houses on the market without offers, which is up 6.3% from the previous year. Furthermore, 5,042 single-family houses were sold, down 5% from last year. The Greater Las Vegas Association of Realtors released that the median price for a single-family house peaked to $303,000. Janet Carpenter, president of the Greater Las Vega Association of Realtors said in a statement earlier last June “we’re running out of synonyms for stable, local home prices are appreciating but at a more gradual rate than they have been in many years. The local housing market hasn’t been this stable in nearly 20 years.”
Home market prices finally cooling down
Las Vegas Valley’s existing house prices had generally been increasing since early 2012. Prices reached their highest level September 2018 with a median sales price of previously owned single-family homes reaching $300,000 up 1.7% from August and 13.2% from September 2017. Last June homes prices descended to their lowest rate in the past 7 years.
“The rate of appreciation has been slowing down and that has become especially apparent over the past few months, one big difference between now and 7 years ago is the median home price back then was only $128,000,” commented Janet Carpenter.
Las Vegas home market
There are presently 9,768 properties listed for sale inside the valley with 4,875 properties in escrow and with 184 of those being short sales. Moreover, when it comes to new construction, there are now around 300 undergoing home development projects.
Interestingly, companies such as Zillow have been performing a Home Price Expectations Survey, asking more than 200 real estate economists and experts to give predictions about the U.S housing market and their expectations for the next recession. Half of the people surveyed predicted the next recession will start by 2020. Experts such as Anna Usma commented
“it’s not that recession we saw 10 years ago. It’s not the same market we had last year, but home prices are keeping up with what the values are. They are not depreciating as rapidly as we have seen in the past.”