Las Vegas area real estate continues to heat up like our summer temperatures. Sale prices keep edging upward gradually, continuing a pattern we’ve been seeing for some time. In fact, according to real estate data collector CoreLogic, Nevada was the top state for home price appreciation over a 12 month period ending May 2013, with a 26% increase!
Our increasing home prices have played a large part in the drop we’ve been seeing in distressed properties (short sales, foreclosures & auctions) that are on the market. Prices have now reached a level that many homeowners who were underwater are now seeing their home values close to or even higher than what they owe on their loan, meaning that they can now put their homes on the market as regular home sales. And indeed, we’ve been seeing a healthy increase in the listing of these traditional sales.
Although prices are edging upwards, we’ve been seeing a slight drop in the number of homes that are under contract. Some people may feel a certain uneasiness whenever our market experiences a dip, especially since we are still relatively early in our market recovery. However, we see this pattern every summer; when temperatures rise, buyers are less interested in driving around and looking at houses. Aside from predictable seasonal fluctuations, another sign that our real estate market is healthy is the fact that the inventory of homes is still critically low, despite the fact that the number of homes offered for sale is increasing.
Although interest rates have been rising along with prices, both are still low enough to make home ownership more affordable for an increasing number of families. Combined with our economic recovery, I think Las Vegas area real estate has a bright future ahead!
Graph provided courtesy Channelle Beller, National Title Company