Las Vegas Home Prices Up 27 Percent
The medium home price for homes sold in January 2013 was $150,000 up from $118,000 in January 2012. Inventory of homes for sale in the MLS is down 24.7%, and we only have 3334 available without offers. This has increased new home sales which is up 42 percent in 2012. 56% of resale homes purchased was with cash.
What's the reason for this price appreciation? Well, in my opinion it is supply that is down because of less foreclosures on the market and high demand because of low interest rates, and the affordability of our market compared to other high cost markets such as California. New homes are coming in to fill the void which I think will lead to increased supply and price gains will slow down.
In addition I feel more distressed properties will hit the market now that banks has settled with state and federal lawsuits and the rapidly inflating bubble will have some air let out of it. I also feel that increased demand is due to many people who were sitting on the sidelines thinking the bottom is not here, have realized that it has passed and they are jumping off the fence to get in before prices go up further. Buying a home in our market is still a wise investment and once thing I feel certain of is that we are on our way to recovery, and unless we get a lot more inventory quickly prices are going to continue to rise.