LAS VEGAS (KLAS) — Home prices are up 20.9% over one year ago, according to information released Wednesday by Las Vegas REALTORS (LVR), but prices stayed where they were in July.
Real estate experts described it as a “momentary pause” while the market prepares for the last surge before a holiday slowdown begins.
The median price for an existing single-family home hit $405,000 in August, matching the all-time record set in July. That compares to a median price of $335,000 one year ago.
Condos were even hotter, selling at a price 23.8% higher than a year ago. The median price for condos and townhomes was $229,000 in August, compared to $185,000 a year ago.
“After setting records each month since January, expectations of this continued trend were high. However, we always have to account for the seasonal conditions that cause pauses in our markets. As noted in our opening remarks, these pauses are normal, at least for now,” said LVR President Aldo Martinez.
And while the high end of the Las Vegas housing market is soaring — an expected record year for sales of homes priced over $1 million — the prices are preventing many people from buying a new home at all.
“Prices have been rising much faster than incomes. That’s not sustainable over the long term,” Martinez said.
“Even with mortgage interest rates near all-time lows, it’s still presenting challenges for some buyers and working-class families to afford a home. This is prompting some buyers to consider alternatives to the single-family detached residential home and start looking at more affordable options like condominiums, townhomes, and even renting,” he said.
The competition for homes remains fierce as an increasing number of buyers pay with cash — 47.1% of sales in August were cash sales, up from 17.5% a year ago. That’s still slightly below the March 2013 peak of the “housing bubble.”
Homes have been selling faster this year than in previous years. In August, 96.4% of all existing local homes and 95.8% of all existing local condos and townhomes sold within 60 days.