A recent analysis reveals that the cost of homes in the Las Vegas area is increasing at a greater rate than the national average. However, the report also indicates that the rate of this appreciation has diminished both locally and across the nation compared to last year.
Las Vegas Homebuilders’ Sales ‘Underwhelm’ Amidst Increasing Prices
Las Vegas home prices rising faster than US average, report says&body=You may be interested in the following post: Las Vegas house prices are rising faster than the U.S. average, but the pace of growth has slowed locally and nationally in the past year, according to a new report.
National and Local Price Growth Trends
According to the S&P CoreLogic Case-Shiller index, published on Tuesday, national housing prices saw an increase of approximately 3.4 percent in March compared to the same period last year. This is a decrease from the roughly 6.5 percent year-over-year increase recorded in March 2024.
Data from Case-Shiller shows that in Southern Nevada, home values in March rose by about 4.7 percent compared to the previous year. This figure is also lower than the 7.7 percent annual increase seen in March 2024.
Metro Area Variations
Out of the 20 metropolitan areas surveyed in the report, New York City demonstrated the largest annual price increase in March, registering nearly 8 percent growth. Conversely, Tampa, Florida, was the only market experiencing a decline in prices from the previous year, with a drop of almost 2.2 percent.
Nicholas Godec, who leads fixed income tradables and commodities at S&P Dow Jones Indices, stated in a press release that prices in most metropolitan areas were driven upward by limited supply coupled with consistent demand.
He also noted that affordability concerns remained “firmly in place,” and the escalation of prices continued its deceleration.
Las Vegas Market Slowdown
Local housing sales in Las Vegas have diminished in the past month due to high prices and increased mortgage rates.
Homebuilders in Southern Nevada recorded 766 net sales in April, representing newly signed contracts minus cancellations. This is a 29 percent decrease from the same month last year, according to a recent report by Las Vegas-based Home Builders Research.
This significant reduction occurred during what is traditionally known as the spring buying season.
Andrew Smith, President of Home Builders Research, commented that “The market is steadily slowing week to week lately, unexpected for this time of year.”
Resale Market Trends
Buyers also purchased fewer existing homes last month, and the available inventory significantly increased.
Data from the Las Vegas Realtors trade association indicates that approximately 2,170 previously owned single-family homes were sold in April in Southern Nevada, a decrease of 7 percent from the same month last year.
The group also reported that over 6,200 houses were listed for sale without receiving any offers by the end of April, marking an increase of almost 79 percent year-over-year.