It was a record-breaking month last June 2020 for Southern Nevada as home prices defy economic downturn, the latest report says.
According to the latest Las Vegas Realtors report, the median price of existing-family homes during June through its Multiple Listing Service (MLS) was at $325,000. That figure is enough to break the previous record set in March, which was at $319,000 and was also 6.9 percent higher than the median price set during the same period last year.
Local condos and townhomes also posted growth, up by 5.3 percent year-over-year to a median price of $187,250, the World Property Journal report noted. Home sale volume was up by nearly 45 percent from March, LVR president Tom Blanchard said. He said that the surge in home prices was aided by the fact that the local housing market already gained a solid footing when the state of emergency was declared in Nevada last March.
The sales volume of condos, townhomes, and existing local homes was significantly higher than last month, reaching a total of 2,934 in June. However, compared to the same period the previous year, the June home sales volume is down 15.1 percent while condos and townhomes also went down 35 percent.
This year, home sales were already surpassing 2019's pace, and local home prices are already breaking the all-time high set in June of 2006, which was at $315,000. The median sale price of existing single-family homes in Southern Nevada bottomed out in January 2012, reaching its lowest point at $118,000 before bouncing back.
The number of homes available for sale is still below the six-month supply, which is the desired level for a balanced market. In June, the sales pace equates to just over a two-month supply of homes for sale. But while inventory is still tight, Blanchard said that buyers don't mind paying more for a home in Southern Nevada.
In June, a total of 5,079 single-family homes were listed for sale with an offer, dropping 35 percent from last year. Meanwhile, the number of condos and townhomes listed dropped 16.6 percent compared to the same period the previous year ar 1,616 properties.
Of all the properties sold in June, 15.7 percent were purchased with cash compared to 20.2 percent from a year ago and February 2013 peak of 59.5 percent. That decline is an indication that many cash buyers have opted to stay on the sidelines.
Distressed sales, on the other hand, are still within historical lows. According to the LVR report, short sales and foreclosures of total existing local property sales last June remained unchanged compared to the previous year at 2.2 percent. The proportion of short sales and foreclosures in existing local property sales two and three years ago was 2.6 percent and 6.3 percent, respectively.
Moreover, the real estate transactions in June recorded a total value was over $931 million for homes and almost $94 million for condos and high-rise condos and townhomes. Overall sales values declined 9.4 percent for homes and 31.2 percent for condos and townhomes year-over-year.
