Following a surge in condo prices, the cost of single-family homes in Las Vegas is nearing an unprecedented high.
In November, condo prices saw a decline while the cost of single-family homes approached record levels, as detailed in a report published on Friday by Las Vegas Realtors (LVR).
Following a peak of $315,000 in October, the median price for condominiums and townhomes saw a significant decline, settling at $301,250 in November. The median price represents the midpoint — with half of the sales occurring at higher prices and the other half at lower prices.
The recent surge in condo prices marks the most significant fluctuation in home prices since February, when single-family homes saw an increase of $15,000. Since that time, the costs for both single-family residences and condos/townhomes have persistently risen, though this ascent has experienced some fluctuations along the way.
The current median price for a single-family home stands at $480,000, only $2,000 away from the historic high of $482,000 reached in May 2022.
LVR observed that the costs for single-family homes and condos/townhomes have risen considerably compared to November 2023. The price of single-family homes has risen by $30,000, reflecting a 6.7% increase, while condos and townhomes have seen a boost of $26,250, marking a 9.5% rise.
At the close of November, LVR disclosed that there were 5,570 single-family homes available for sale without any offers, marking a significant rise of 28.0% compared to the same time last year. There has been a notable rise in the number of condos and townhomes listed without offers, reaching a total of 1,856, which marks a 47.2% increase compared to November 2023.
LVR President Merri Perry expressed optimism, stating, “The rise in both the availability of homes for sale and the volume of properties sold this year bodes well for our housing market as we approach 2025.”
The current estimate for housing supply stands at approximately three and a half months, according to LVR. The current situation shows an increase compared to the same period last year, when Southern Nevada faced a housing supply of under three months.
Throughout much of 2024, residential transactions have outpaced the levels recorded in 2023, a year that marked the lowest activity for existing homes in the local market since 2008.
A total of 2,123 existing local homes, condos, and townhomes were sold in November, according to LVR’s report. In comparison to November 2023, there was a notable increase in sales, with homes rising by 14.8% and condos and townhomes experiencing a 3.7% boost. Homes continued to fly off the market, with roughly 80% of single-family residences being sold in under two months.
On Thursday, Bankrate announced that the national average for a 30-year fixed mortgage stands at 6.84%. The average in Nevada stood at a modest 6.38%.
A report released in November by online mortgage broker Redfin revealed that investors invested slightly more than $1 billion in home purchases within the Las Vegas metro area during the third quarter (July-September). Investor purchases in Las Vegas saw a remarkable increase of 27.6% compared to the previous year during that timeframe.
A recent report reveals that nearly a quarter of all property sales in the area for November were conducted in cash, typically suggesting that investors are the ones making the purchases. According to LVR, 29.8% of total sales were conducted in cash during the same period last year.
The current levels are significantly lower than the cash buyer peak of 59.5% recorded in November 2013, according to LVR.
The home sales data presented in Friday’s report exclusively comes from LVR’s Multiple Listing Service, excluding new constructions and properties sold directly by owners.