Las Vegas House Prices Drop to $440,000 and Condo Prices to $266,000

LAS VEGAS, Nev. (702 Times, NV Globe) – According to a survey issued Tuesday by Las Vegas Realtors, property prices in Las Vegas fell 2.2% in a month to $440,000 in October (LVR).

Buyers who waited to see if prices would continue to fall were rewarded as increasing interest rates further crimped a housing market that had been scorching hot until May of this year. The median property price has now declined from a high of $482,00.

“Ever since mortgage interest rates started rising this summer, we’ve seen the housing market cool down,” said LVR President Brandon Roberts, a longtime local Realtor. “Prices have been going down slightly since we hit our all-time peak in May. We’re seeing more homes on the market, and fewer homes are selling. Through October, local home sales are down about 22% from this time last year.”

The median house price is still up 7.3% year on year from $410,000. The median price is the one in the center – half of the prices are higher and half are cheaper.

In October, condos and townhouses sold for $266,000 on average. This is a 1.5% decrease from the previous month and a decrease from the all-time high price of $285,000 in May. The typical price for condominiums and townhouses remains at $236,000, up 12.7% from October of last year.

According to Roberts, property prices in the Las Vegas valley are still nearly four times higher than they were in January 2012, when the median single-family home price in Southern Nevada was $118,000.

Prices in LVR’s study are for existing residences. New house sales are not included.

In late October, the average long-term mortgage rate in the United States surpassed 7% for the first time in more than two decades, as the Federal Reserve aggressively boosted rates in a bid to contain inflation. Freddie Mac stated on October 27 that the average 30-year fixed rate has risen to 7.08% from 6.94%. At same time last year, 30-year mortgage rates averaged 3.14%.

As more houses are offered for sale, inventory has grown, and LVR estimates that roughly 8,000 single-family homes are for sale with no offers. This is up 140.5% from the same period last year. The 1,775 condominiums and townhouses listed without bids in October represent a 204.5% increase from 2021.

During October, LVR discovered that 25.5% of all local property sales were paid for using cash. This is down from 29.6% a year ago and significantly below the March 2013 cash buyer top of 59.5%.

Within 60 days of listing, 78.6% of all existing local houses and 82.5% of all existing local condominiums and townhomes sold. In comparison, 92.6% of all existing local houses and 94.9% of all existing local condominiums and townhomes sold within 60 days a year ago.

Credits: 8NewsNow