LAS VEGAS (KLAS) — A long run of price increases ended in June, with the median price of a single-family home dropping by $2,000 to $480,000.

The price decrease — the first one since prices started climbing in April 2020 — is a strong sign that the Las Vegas housing market is cooling off, according to Las Vegas Realtors (LVR).

Condos and townhomes followed the trend, dropping by $5,000 to $285,000, LVR said.

“Rising mortgage interest rates sparked a slowdown that was bound to happen at some point,” LVR President Brandon Roberts said. “Local home prices can’t keep going up at the rate they have been the past few years. More stable prices, along with the increasing number of homes on the market and decreasing number of homes being sold, are providing some relief for potential buyers.”

The end of the steep climb in housing prices comes as the number of houses available without a pending or contingent offer shot up by the end of June. Homes that just hit the market in June had a median asking price of just under $500,000 — and the number of new listings jumped by nearly 16% over homes put on the market in May.

The LVR report is for existing single-family homes — newly constructed homes are not included. The median price is the one in the middle — half the prices are higher, and half the prices are lower.

The supply of available homes increased dramatically — twice as many as were available in past months, according to Roberts — but the suppy is still “very tight” by historical standards.

Nick Laymon a real estate advisor called the change a welcome relief for buyers, but some sellers may need to make some adjustments.

“Buyers now have a little more options, more inventory, opportunity to negotiate on price, negotiate on repairs,” he said. “Sellers need to be aware and a little more flexible, that you may have to paint that door, you may need to fix that garbage disposal that was broken.”

Part of the rise in prices over the past two year is tied to restrictions on evictions and foreclosures. So-called “distressed sales” have been at historical lows while restrictions on evictions and foreclosures remained in place during the COVID-19 pandemic.

The number of homes sold has dropped significantly from 2021 levels.

LVR also reports that 34.2% of all sales have been cash sales. While that’s an increase over last year at this time, it’s still well below the peak of 59.5% as the recession was ending in March 2013.