For release June 10, 2013
Contact: George McCabe, B&P Public Relations
GLVAR says local housing market, home prices heating up
LAS VEGAS – Statistics released this week by the Greater Las Vegas Association of REALTORS (GLVAR) show existing home prices rising along with Southern Nevada’s triple-digit temperatures.
“Historically, this is a time of year when home sales and prices usually heat up,” said 2013 GLVAR President Dave Tina, a longtime local REALTOR. “But as we’ve been saying for several months, our home prices have been going up rapidly this year. This appreciation means more local homeowners have more equity in their homes, and fewer homeowners are underwater. As REALTORS, we’re hoping these rising home values convince more homeowners who’ve been considering a move to put their homes on the market, because we really need more homes to sell.”
The median price of an existing single-family home sold in Southern Nevada during May was $170,000. That’s up 1.8 percent from $167,000 in April and up 32.8 percent from $128,000 one year ago. However, Tina noted today’s prices reached similar levels in December of 2008 and in February of 2003. “And we’re still a long way from our peak,” when median local home prices hit $315,000 in June 2006. Though he doubts local home prices will keep rising at this rate, he suspects “there’s still room for prices to appreciate” in the near future.
Meanwhile, the median price of local condominiums and townhomes sold in May was $89,000, up 4.7 percent from $85,000 in April and up 43.5 percent from $62,000 one year ago.
With prices rising and about a five-week supply of homes available to sell each month, GLVAR has been reporting more homes sold by “traditional” sellers – as opposed to lenders, who are responsible for the short sales and foreclosures that dominated the market in recent years. In fact, for the first time in years, Tina said “traditional” sales account for more than half of all local home sales so far in 2013.
GLVAR has also been reporting fewer foreclosures and short sales – which occur when a lender agrees to sell a home for less than what the borrower owes on the mortgage.
In May, 31.8 percent of all existing local home sales were short sales, down from 32.5 percent in April. Another 10.3 percent of all May sales were bank-owned properties, up from 10.0 percent of all sales in April. The remaining 57.9 percent of all sales were the traditional type, which was up from 57.5 percent in April.
Tina expects short sales to continue playing a significant part in the housing market this year before tapering off in 2014, primarily because the Mortgage Forgiveness Debt Relief Act is set to expire Dec. 31, 2013. Barring any further extensions, any amount of money a bank writes off in agreeing to sell a home as part of a short sale starting in 2014 may become taxable when sellers file their income taxes.
GLVAR said the total number of existing local homes, condominiums and townhomes sold in May was 3,884. That’s up from 3,789 in April, but down from 4,134 total sales in May 2012. Compared to April, single-family home sales during May increased by 0.7 percent, while sales of condos and townhomes increased by 10.2 percent. Compared to one year ago, single-family home sales were down 9.9 percent, while condo and townhome sales were up 12.3 percent.
The total number of properties listed for sale on GLVAR’s Multiple Listing Service decreased in May, with 13,814 single-family homes listed for sale at the end of the month. That’s down 0.5 percent from 13,881 single-family homes listed for sale at the end of April. GLVAR reported a total of 3,386 condos and townhomes listed for sale on its MLS in May, down 2.8 percent from 3,485 listed in April and down 9.2 percent from one year ago.
As for available homes listed for sale without any sort of pending or contingent offer by the end of May, GLVAR reported 3,297 single-family homes listed without any sort of offer. That’s up 4.3 percent from 3,161 such homes listed in April, but still down 13.2 percent from one year ago. For condos and townhomes, the 1,277 properties listed without offers in May represented a 1.3 percent increase from 1,261 such properties in April, and a 20.7 percent increase from one year ago.
In May, GLVAR reported that 57.9 percent of all existing local homes sold were purchased with cash. That’s down from 59.3 percent in April and just off the peak of 59.5 percent set in February.
GLVAR reported that the median price of bank-owned single-family homes sold in May was $154,900, up from $152,000 in April. The median price of single-family homes sold as part of a short sale in May was $140,100, up from $140,000 in April.
These GLVAR statistics include activity through the end of May 2013. GLVAR distributes such statistics each month based on data collected through its MLS, which does not necessarily account for newly constructed homes sold by local builders or for sale by owners. Other highlights include:
• The monthly value of local real estate transactions tracked through the MLS during May increased by 2.0 percent for homes to nearly $652 million. For condos and townhomes, the total value of all sales in May was nearly $105 million, up 5.8 percent from April. Compared to one year ago, total sales volumes in May were up 19.4 percent for homes and up 61.8 percent for condos and townhomes.
• In May, 75.0 percent of all local homes and 73.2 percent of all condos and townhomes sold within 60 days. That compares to April, when 73.7 percent of all homes and 75.3 percent of all condos and townhomes sold within 60 days.
About the GLVAR
GLVAR was founded in 1947 and provides its more than 11,000 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.