LAS VEGAS (KLAS) — Prices keep going higher as the Las Vegas home market reaches new records, according to the March report from Las Vegas REALTORS.
The median price of existing single-family homes in Southern Nevada hit $363,000 in March, up 2.3% over February’s record of $355,000. March’s median price was up 13.8% over March 2020.
“This is the first month where our housing statistics show a year-over-year comparison to the beginning of the pandemic,” said LVR President Aldo Martinez. “At the rate we’re going, we could see even greater gains in home prices and sales next month, since the housing market stalled briefly last April before roaring back since then.”
Prices for condos and townhomes also increased compared to last year, selling for a median price of $194,000 in March, up 4.6% from $185,500 in March of 2020.
A total of 4,724 existing homes, condos and townhomes were sold during March, according to Las Vegas REALTORS. Compared to the same time last year, March sales were up 35.1% for homes, and up 39.8% for condos and townhomes.
Martinez attributes “the current abnormal price growth” to a shortage of homes available for sale, steady demand and relatively low mortgage interest rates.
Martinez said the shortage of homes available for sale continues to present a challenge for potential buyers and a rare opportunity for sellers.
While a six-month supply is traditionally considered to be a balanced market, the pace of home sales in March compared to available homes equates to less than a one-month supply.
“The pandemic has contributed to the supply shortage due in part to homeowners being out of work, and therefore unable to upgrade even if they wanted to unless they could pay cash,” he added. “In addition, reports from the National Association of REALTORS® show homeowners are staying longer in their homes, up from five to seven years in recent history to closer to seven to nine years today, which could also be attributed to lower than normal interest rates.”
During March, LVR reported that 24.1% of all local property sales were purchased with cash, up from 21.2% a year ago. That’s well below the March 2013 peak of 59.5%.