Las Vegas housing market sees prices on the rise
According to statistics released by DataQuick, Las Vegas home sales fell year-over-year for the first time in the past 12 months during June. Sales numbers for real estate in Las Vegas under $200,000 dropped significantly, partly because the rate of foreclosures fell to the lowest it has been in 4.5 years.
In June, close to 4,500 new and resale homes and condos closed escrow, which was an 8 percent decrease from the month before, and 15.6 percent lower than a year ago. Higher priced homes continued to post the largest year-over-year gains in number of properties sold; for instance, homes priced above $300,000 rose 10.8 percent since last year compared with homes below $100,000, which fell 26.1 percent. The number of homes that sold for less than $200,000 decreased by 19.8 percent from last year. Real estate sales above $500,000, which only make up 2 percent of the market, increased by 35.9 percent.
"Prices are slowly creeping up," Erik Molzen, a real estate professional in Las Vegas, told Las Vegas CBS affiliate KLAS. "I think that sellers are realizing that with the lack of inventory there are a lot of options for them. They don't need to grab the first buyer who comes knocking on their door. They can wait maybe a week or two till a better buyer comes along."
Of all new and resale homes and condos sold in the Las Vegas area during June, the average price came to $125,000, which was up 2.5 percent compared with May. June was the fifth consecutive month with a month-to-month gain in the median sales price. Before April, that number hadn't grown on a year-over-year basis since June 2010.
A new Nevada law created additional requirements for lenders trying to foreclose on properties, which caused the rate of defaults to dramatically decrease. In June, 1,102 homes were foreclosed on, 16.7 percent more than the previous month and down 56.6 percent from the previous year of 3,612.
According to DataQuick, the number of foreclosed or short sale homes made up 48.7 percent of the market. That number is down from 52.6 percent in May, and 68.6 percent from last year.