Despite the hot weather in April, the housing market felt a bit cooler in Las Vegas to start the spring, but recent gains in May have put the area’s housing market back on track. Since January 2012, Nevada homes have gradually regained their value, which had been hit particularly hard by the economy. The recent boost in May returned median home prices to March levels—the peak since the recovery began—and reveals even stronger growth when compared to home prices a year ago.
Las Vegas Median Home Prices
Home prices rose throughout Las Vegas in May, hitting $195,000, the area’s median sale price in March, once again. Prices had dropped slightly to $192,000 in April, but the recent 1.56% price gains reveal a stabilizing market. Total home sales were also up 8%, with 2,825 homes sold in May, due in part to the recent drop in mortgage rates throughout the country and the typical boost in spring real estate listings. Though spikes in home values can be thrilling to investors and homeowners, especially those with underwater mortgages, this slower growth reveals a healthy appreciation in the market.
The strength of this gradual growth can be seen when looking at Las Vegas home values a year ago. In May 2013, the median sale price of a single-family home was $170,000. Current figures mark a 14.7% year-over-year growth—a strong recovery from the city’s lows. Analysts predict this growth rate will eventually slow, as the Las Vegas housing market continues to stabilize, but these large increases have benefited many homeowners who experienced the recession especially hard.
When to Buy a Home in Las Vegas
The small drop in April notwithstanding, the increases in Las Vegas home prices since 2012 reveal a steady market, gradually appreciating. Anyone who’s been on the fence about buying a home in Las Vegas would be wise to act now and make an offer before prices increase beyond a first time homebuyer’s reach. Though the recession hurt many Nevada residents, it opened up home ownership to people who just couldn’t afford a $315,000 median price—the area’s peak in June 2006. Slower, steadier growth means a more stable long-term financial investment for first-time homebuyers looking to get into the market. Use our new mortgage calculator for an estimate of your monthly Las Vegas mortgage payment.
If you’re interested in purchasing, refinancing, or learning more about mortgage rates in Las Vegas, simply fill out our Fast Response form or call our local branch at (702) 669-5400. Our experienced mortgage professionals would love to sit down and discuss your needs. We look forward to hearing from you!