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LAS VEGAS -- Standard and Poor's Case-Shiller Home Price Index levels shows Las Vegas home prices increased twice the national average at 20.6 percent in March 2013, year-over-year.
Las Vegas real estate experts predict that new median home prices could reach $250,000 by early next year.
Home prices are soaring at a fast pace not seen since southern Nevada's boom years.
"We have a sellers' market," said David Tina, president of the Greater Las Vegas Association of Realtors. "Houses are going $10,000 to $15,000 over list price."
Tina said there are not enough homes to sell.
"Cash is king," Tina said. "Last month, 60 percent of all sales were cash, and that's a combination of investors and buyers."
The foreclosure inventory in Las Vegas will likely jump from 10 to 15 percent in the coming months, but not enough to drive prices back down, Tina said.
"It's a challenge," Tina said. "I think the banks are pretty smart, and as they get them, they'll release them, but they're not going to flood that market."
Owning a home is part of the American dream, but in Nevada, many potential homebuyers are getting frustrated. They're putting in bid after bid, only to get beaten out for their dream home by cash buyers and investors. In turn, more homebuyers are turning to newly built houses.
Nicole Bloom, vice president of sales for home builder Richmond American, said new homes are becoming very attractive in the market.
"A lot of buyers are looking for single story homes," Bloom said. "More space. Room for bigger backyard, bigger driveways. … Your cost to get into the house initially tends to be less because a lot of builders will offer closing cost incentive."
Plus, with a warranty, financing, and upgrades, more homebuyers are turning to builders during this bounce back.
Tina said the median price of single-family homes sold in April in Las Vegas was $167,000.
A year ago, it was less than $128,000.
Some experts have warned about another housing bubble, but Tina said he doesn't think that will happen.