Las Vegas Housing Market Sees Significant Increase in Home Sales, but Median Prices Remain Down

Strategic Insights -

A surge in home sales and a boost in demand has marked the Las Vegas housing market, with existing home sales increasing by 50.8 percent in November to 3,952, according to data from SalesTraq. The median resale price of $125,000 is down 27.5 percent from the same month a year ago, but has seen a $2,000 bump from the previous month. The new-home segment continues to struggle, with a 19.4 percent decrease in median price to $198,466, the first time it's been below $200,000 since 2002.

Key Takeaways:

  • Existing home sales in Las Vegas increased by 50.8 percent in November to 3,952, with 51 percent of homes sold being purchased by first-time homebuyers who benefited from the $8,000 tax credit.
  • The median resale price of $125,000 is down 27.5 percent from the same month a year ago, but has seen a $2,000 bump from the previous month.
  • The new-home segment continues to struggle, with a 19.4 percent decrease in median price to $198,466, the first time it's been below $200,000 since 2002.
  • Nationally, November home sales rose by 7.4 percent and are at the highest level in nearly three years, with sales reaching a seasonally adjusted annual rate of 6.54 million units.
  • Sales of existing homes rose to a seasonally adjusted annual rate of 6.54 million units in November, up from 6.09 million in October and 44 percent from the 4.54-million-unit pace in November 2008.
  • Consultant Steve Bottfeld of Marketing Solutions suggests that Las Vegas may be entering a new real estate era, with the residential market transitioning from what it was to what it will become.
  • Housing analyst Dennis Smith of Home Builders Research counted 604 new home sales and 3,696 existing home sales in November, with median new home prices dropping to $195,000 and existing home prices falling to $124,000.

Statistics:

  • Existing home sales in Las Vegas increased by 50.8 percent in November to 3,952.
  • The median resale price of $125,000 is down 27.5 percent from the same month a year ago.
  • The new-home segment's median price decreased by 19.4 percent to $198,466, the first time it's been below $200,000 since 2002.
  • Nationally, November home sales rose by 7.4 percent and are at the highest level in nearly three years.
  • Sales of existing homes rose to a seasonally adjusted annual rate of 6.54 million units in November, up from 6.09 million in October.
  • The number of foreclosures in Las Vegas decreased by 27 percent in November, with 1,477 foreclosures, compared to 2,037 in November 2008.
  • The total number of new-home sales and existing home sales in November was 3,300, a 6.1 percent decrease and 46.8 percent increase, respectively, from the same month a year ago.

Sources:

  • SalesTraq
  • National Association of Realtors
  • Marketing Solutions
  • Home Builders Research
  • Detroit Free Press