LAS VEGAS (KLAS) — Housing prices continued to tumble in November, dropping another 2% to $430,990, according to Las Vegas Realtors (LVR).

Prices have nearly fallen to where they were a year ago — a median price of $420,000 in November 2021 — erasing gains that peaked in a record price of $482,000 in May.

Declines from October prices also affected condos and townhomes, which dropped 2.3% to $260,000, an LVR news release said Tuesday morning.

“Local home prices are starting to look more like they did a year ago. But we’re certainly in a different place than we were last year, when prices were soaring and setting records,” Brandon Roberts, president of LVR said. “Of course, as we said at the time, those conditions were not sustainable.”

What’s different now? Interest rates. And they are affecting decisions on both sides of the equation, Roberts said.

“The shift we’ve seen since mortgage interest rates started rising earlier this year has sparked a situation where many buyers are struggling to afford a home, while many homeowners are reluctant to sell and give up the historically low interest rate they’re enjoying on their current home.”

Home sales were down by more than a half compared to November 2021, and down 46.4% for condos and townhomes. A total of 1,983 homes, condos and townhomes sold in November, and the inventory of available homes has grown to a four-month supply. When prices were skyrocketing last year at this time, inventory reached a low of one month’s supply.

Statistics from LVR are released near the beginning of each month and reflect only existing home sales through LVR’s Multiple Listing Service (MLS) — they do not include new home construction or homes for sale by owners. The median price refers to the price in the middle — half are higher and half are lower.

Even with the losses since the May peak, home prices in the Las Vegas valley are more than triple prices that were seen in January 2012, the bottom of the market after the housing bubble burst during the Great Recession. The median price in 2012 bottomed out at $118,000 in Southern Nevada.

LVR reports that 28.8% of all local property sales were cash purchases, down from 30.1% a year ago and well below the March 2013 cash buyer peak of 59.5%.

Other highlights include:

  • The total value of local real estate transactions tracked through the MLS during November was nearly $805 million for homes and nearly $126 million for condos, high-rise condos and townhomes. Compared to one year ago, total sales values in November were down 50.9% for homes and down 42.4% for condos and townhomes.
  • In November, 73.6% of all existing local homes and 76.4% of all existing local condos and townhomes sold within 60 days. That compares to one year ago, when 91.3% of all existing local homes and 90.8% of all existing local condos and townhomes sold within 60 days.