Home prices stable in Las Vegas as interest rates maintain grip on the market

Home prices stable in Las Vegas as interest rates maintain grip on the market

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LAS VEGAS (KLAS) — Las Vegas home prices are going through a period of stability that has lasted five months, a product of higher interest rates.

The median price of a single-family home increased by $1,000 from October to November, settling at $450,000, according to figures released Wednesday morning by Las Vegas Realtors (LVR). That’s up 4.4% compared to November 2022.

Condominiums and townhomes came in at a median price of $275,000, down just $500 since October. The condo market has been more volatile recently, hitting an all-time high of $287,000 in August before dropping back.

“Interest rates are higher now than in past years and our housing supply is about as low as it gets,” according to Lee Barrett, LVR president. “These factors seem to be propping up home prices and slowing down home sales.”

According to Bankrate, the average current interest rate for a 30-year mortgage is 7.53%.

The number of single-family homes that sold in November — 1,435 — was down 15.5% from the number of sales in October. And while the median price remained at $450,000, the average prices was much higher: $582,117. That’s up 7.2% from October. The average price was 10.0% higher than a year ago.

The median price is the one in the middle — half sold for a higher price and half sold for less. The average — also called the mean — is calculated by dividing the sum of all sales by the number of units sold.

LVR’s figures are only for existing homes sold through the Multiple Listings Service. They do not include new homes or homes for sale by owners.

The total value of all single-family home sales in November was $835.3 million, down 9.5% from October.

The number of properties on the market without an offer has decreased dramatically since last year, LVR said. By the end of November, 4,353 single-family homes listed for sale didn’t have any sort of offer — a 40.7% drop from the same time last year. For condos and townhomes, 1,261 properties didn’t have an offers in November — a 22.8% decline from a year earlier.

In November, 83.0% of single-family homes and 88.2% of condos/townhomes sold within 60 days. That compares to one year earlier, when 73.6% of homes and 76.4% of condos/townhomes sold within 60 days.

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