Las Vegas Has Less Cash Buyers in Housing Market in 4 Years.
Las Vegas has less cash buyers while home prices rise.
Las Vegas Association of Realtors (GLVAR), local Las Vegas say home prices continued to climb in June while the percentage of buyers paying cash fell to its lowest point in four years.
GLVAR reported the median price of existing single-family homes sold in Southern Nevada during June was $199,900, up 2.5 percent from $195,000 in May and up 14.2 percent from June of 2013. That’s the highest median home price GLVAR has reported since September of 2008. The median price of existing condominiums and townhomes sold in June was $109,000, up 6.9 percent from $102,000 in May and up 26.7 percent from one year ago.
“Our GLVAR median home price is almost back to $200,000, which is encouraging,” said GLVAR President Heidi Kasama. “While real estate investors have played a key role in helping our housing market recover in recent years, it’s also good to see more traditional buyers entering the market. The percentage of local home buyers paying with cash is now under 35 percent. It hasn’t been that low since July of 2009.”
Putting these prices into perspective, Kasama said existing local home prices are still well below their June 2006 peak of $315,000. Prices bottomed out at a median of $118,000 in January 2012 before rising for a record 19 straight months until September 2013, then increasing more gradually since then.
Fewer existing homes were sold in June than during May, according to GLVAR. Kasama said local home sales so far in 2014 are running about 13 percent behind last year’s sales pace. At the current sales pace, she said Southern Nevada has less than a three-month supply of available homes. But compared to one year ago, she said Southern Nevada has almost twice as many homes available for sale without pending or contingent offers on them.
Since 2013, GLVAR has reported fewer distressed sales and more traditional home sales, where lenders are not controlling the transaction. However, in June, GLVAR tracked an uptick in short sales – which occur when lenders allow borrowers to sell a home for less than what they owe on the mortgage. In June, 10.8 percent of all existing local home sales were short sales. That’s up from 7.9 percent in May. Another 10.1 percent of all June sales were bank-owned properties, up from 9.1 percent in May.
According to GLVAR, the total number of existing local homes, condominiums and townhomes sold in June was 3,274, down from 3,450 in May and down from 3,642 one year ago.