Hey there, folks! We’ve got some exciting real estate news hot off the press from the vibrant city of Las Vegas. The year 2023 was an interesting one for the local housing market, marked by both challenges and opportunities. Let’s dive into the numbers and see what’s been happening in Sin City!
Rising Prices in the Desert Oasis
First up, let’s talk about the numbers. According to a report from Las Vegas Realtors (LVR), the median price of existing single-family homes in December 2023 was $449,900. That’s a 5.9 percent increase from the same time in 2022 when it was $425,000. Las Vegas home prices are still below the record high of $482,000 set in May 2022.
As for condos and townhomes, their median price in December 2023 was $270,000, up by a whopping 9.3 percent from $246,950 in December 2022. But it’s essential to note that this price is still lower than the all-time high of $287,000 seen in August 2022.
Blame It on the Tight Housing Supply
Merri Perry, the 2024 LVR president, attributed this price surge to the persistently tight housing supply throughout 2023. The good news is that mortgage interest rates, which had been on the rise for most of the year, started to dip towards the end of 2023. This drop in interest rates provided some relief to potential homebuyers.
“It was good to see interest rates coming back down late in the year,” Perry said. “That helps more buyers afford a home. While we still need more homes on the market, many national experts are predicting at least some increase in the housing supply as we get into 2024. That should help buyers and help us sell more homes.”
Supply Woes Continue
But there’s a catch – the supply of homes for sale remained tight at the end of December. LVR reported 3,766 single-family homes listed for sale with no offers, which is a significant drop of 39.4 percent compared to the previous year. For condos and townhomes, there were 1,133 listings without offers, an 18.5 percent decrease.
Sales in Review
Despite the tight supply, a total of 1,981 existing local homes, condos, and townhomes were sold in December 2023. While home sales were down by 1 percent compared to December 2022, condo and townhome sales saw a notable increase of 18.1 percent.
The pace of sales in December left the market with approximately two and a half months’ worth of properties available for sale. A year earlier, Southern Nevada had nearly a four-month housing supply.
A Year in Review
In 2023, a total of 29,069 sales of existing local homes, condos, and townhomes were recorded, a decrease from the 35,584 total sales in 2022. It’s essential to note that 2021 was a record year for existing local home sales, with a whopping 50,010 properties sold.
This marked 2023 as the year with the fewest local property sales since at least 2014, likely even since the Great Recession.
Cash is King
During December, LVR reported that 28.8 percent of all local property sales were cash transactions, up from 22.2 percent one year prior. However, this is still well below the peak of cash transactions in May 2013, which reached 59.5 percent. This suggests that investors have been less active in the local housing market.
Distressed Sales Remain Low
The report also highlighted that distressed sales, including short sales and foreclosures, accounted for only 1.2 percent of all existing local property sales in December. This is a slight increase from 0.7 percent in the previous year but significantly lower than figures from three to five years ago.
A Look at the Numbers
In December, local real estate transactions amounted to nearly $860 million for homes and over $137 million for condos, high-rise condos, and townhomes. Compared to the previous year, total sales values in December increased by 9.2 percent for homes and an impressive 35.6 percent for condos and townhomes.
Moreover, a significant percentage of existing local homes and condos (78.5 percent and 82.9 percent, respectively) were sold within 60 days in December. This indicates a healthy market pace compared to the previous year.
What Lies Ahead for Vegas Real Estate?
So, what can we expect in the future? Well, the Las Vegas housing market is navigating through some challenges, but it remains an exciting place for buyers and investors. Keep an eye out for potential changes in the housing supply as 2024 unfolds, and who knows, you might just find your dream home in the heart of this desert oasis.
That’s it for our Vegas housing update! Stay tuned for more exciting real estate news from the Entertainment & Sports Capital of the World!
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