August Housing Market Update: Las Vegas Home Prices Dip Slightly

As we move through 2024, the Las Vegas real estate market has seen a slight dip in prices, bringing some much-needed relief for prospective buyers. In August, the median price for a single-family home fell to $476,875. Townhomes and condominiums also saw a price decrease, with the median closing at $292,000, down $4,000 from July’s record high for condos.

A Hope for More Affordable Housing

While prices have fluctuated throughout the year, Las Vegas Realtors (LVR) President Merri Perry provided some insight into the current trends. She noted that despite higher mortgage interest rates, home prices have mostly risen both locally and across the nation.

“For the most part, home prices have been rising locally and nationally this year, even with mortgage interest rates being higher than they were in previous years,” Perry said. “We’re hoping homes will soon become at least somewhat more affordable for buyers – assuming interest rates start to decline this fall as national experts are expecting.”

Mortgage Rates: What to Expect?

The ever-changing mortgage rates have a significant impact on buyer affordability. According to Redfin, mortgage rates may not drop much further than the current levels. It appears that markets have already factored in anticipated interest-rate cuts from the Federal Reserve, which are expected to begin in September and continue into 2025.

As of last Thursday, Bankrate reported that the average rate for a 30-year mortgage in Nevada stands at 6.73%.

Election-Year Promises on Housing

With a national election around the corner, many promises about improving housing affordability are tied to Congress allocating funds to support such measures. The election results could influence the trajectory of these plans and any potential relief for the housing market.

Key Highlights from the LVR Report

Here are some of the key takeaways from LVR’s latest report on the Las Vegas real estate market:

• Cash sales: In August, 24.1% of all local property sales were made in cash, down from 26.0% a year ago and far below the peak of 59.5% in August 2013.
• Homes for sale: The number of single-family homes listed without offers rose by 35.7% from a year ago, reaching 5,268.
• Condos and townhomes: In August, 1,640 condos and townhomes were listed without offers, representing a 67.7% increase from the previous year.
• Sales activity: A total of 2,711 existing homes, condos, and townhomes were sold in August. Home sales were up 6.4% compared to August 2023, but condo and townhome sales fell by 10.5%.
• Housing supply: By the end of August, there was a 2½ month supply of available homes, condos, and townhomes for sale, slightly higher than last year’s supply.
• Short sales and foreclosures: These distressed sales made up just 0.6% of the market, down from 1.6% a year ago and a notable drop from previous years.

Homes Still Moving Fast

Even with shifting prices, homes are still selling relatively quickly. In August, 86.5% of all existing homes and 82.9% of condos and townhomes sold within 60 days. This reflects a similar pace to last year when 85.3% of homes and 88.5% of condos and townhomes sold within the same timeframe.

This slight dip in prices could signal an opening for potential buyers, especially if interest rates stabilize or decline later this year. Stay tuned for more updates on the ever-evolving Las Vegas housing market!

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The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Very Vintage Vegas does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your research and due diligence and obtain professional advice before making any investment decision. Very Vintage Vegas, will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.