July residential real estate data for the Las Vegas area seems to be pointing towards a market in balance. The average home price has been very stable the past three month, dropping only slightly from $249,436 in June to $248,059 in July. July’s average price this year is up a respectable 5% from the same time last year.
The number of homes that sold in July dropped quite a bit and are below what we saw the same time last year. However, a quick peek at the number of listings currently on the market offers an answer as to what is going on.
The number of homes currently offered for sale has been on a gradual decline for many, many months. With fewer homes offered for sale, fewer homes can be purchased, so when inventory goes down, sales volume goes down too. The fact that prices are holding steady indicate that we are reaching (if we haven’t already reached) a balance between supply and demand. In other words, the Las Vegas area residential real estate market has shed much of the volatility we’ve seen in recent years.
It’s not uncommon for there to be a mid- to late summer surge in sales as buyers rush to purchase homes before school and the fall/winter holiday season starts, which is what we saw in June. However, I’m anticipating that we will be starting to see our seasonal cool-down as summer passes into fall.