“Las Vegas home buyers are facing a smaller than normal inventory of homes for sales. But that is to be expected especially in areas such as Henderson and Paradise. The demand for homes is outpacing the supply,” stated R.D. Campbell of Dr Cash Home Buyers. “However the good news for house buyers is that prices have been flat for most of this year. I think it’s just a pause for real estate home sellers and buyers.”
Recent reported figures put the median home price for a resale home in Las Vegas at $303,000. Prices have been hovering around the $300K number for months. It has also been noted by other real estate professionals that home appraisals are below expectations. Expectations probably matched the steady 5% appreciation over the last few years.
“We receive a lot of calls from homeowners with a similar request – ‘sell my Las Vegas house fast‘. We advise them that in a flat price market houses do not sell fast without a discount. So that is something each homeowner or house investor has to balance,” said Mr. Campbell.
Another key statistic that reveals the health of a city’s housing health is deceleration. It suggests how fast and how much price trends have changed, or stated another way, it compares price appreciation over a one year period. A recent report stated that Las Vegas had the fourth greatest deceleration of -11% in home resales prices in the United States. Other cities with higher deceleration were San Jose, CA (-26%), San Francisco, CA (-15%), and Seattle, WA (-13%). Using San Jose as an example of the deceleration calculation, its home resale prices were up 20% this time last year. They are now down 6% as measured year to year. That is a downward price reversal of -26%.
Home prices in Las Vegas have seen a tremendous boom and bust cycle in the last 13 or 14 years. In 2006 the median price for a home was $315,000, a historic high. During and after the Prime Lending mortgage fraud disaster the historic low of median home prices was recorded at $120,000 in 2012. By comparison, 2019 is looking downright awesome at the $300,000 to $303,000 level.
The recent flat prices combined with the deceleration figure have caused concern with residential real estate professionals. Add in the lower house appraisal numbers and concern is one or two steps from panic. However there is hope that the Federal Reserve will cut interest rates and give Las Vegas housing a jolt of good news. On the plus side the rental market for houses is up 6.8% from this time last year. That indicates there is strong demand for rental housing and hopefully some of that demand will spill over to the home ownership area.
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