LAS VEGAS (KLAS) — Home prices jumped again in May, and not by just a little, according to figures released Tuesday morning.
The average price for an existing home went up by $10,000 in just a month, setting a new record and threatening to price first-time buyers out of the market. Las Vegas Realtors (LVR) report a record $385,000 median price.
May’s median price is up 22.2% from $315,000 one year ago.
Prices for condos and townhomes also continued to rise, with a median price of $205,000 — up 10.8% from 185,000 in May of 2020.
“It seems unlikely that home prices will go down anytime soon,” said 2021 LVR President Aldo Martinez. “But it seems very likely that more people will end up renting homes for the foreseeable future.”
“It remains to be seen how much higher these prices can go in the coming months, since we’re reaching a point where more first-time and entry-level buyers are being priced out of the market,” Martinez said.
Martinez added that would-be buyers should stay patient and persistent.
Inventory — the number of homes for sale — is down 70.1% from the same time last year.
LVR reported a total of 4,100 existing local homes, condos and townhomes sold during May. Compared to the same time last year, May sales were up 87.3% for homes and up 144.9% for condos and townhomes. So far this year, local home sales are on pace to exceed last year’s total.
While more homes are selling compared to last year, he said the number of sales have started declining on a month-to-month basis.
During May, LVR reported that 30.9% of all local property sales were purchased with cash. That’s up from 14.5% one year ago, when the housing market was reeling from the onset of the pandemic. However, that’s still well below the March 2013 cash buyer peak of 59.5%.