Home prices in Las Vegas are on the upswing as the city faces a housing shortage. The Las Vegas Review-Journal reported that median sales prices in Southern Nevada rose 2.9% from March to April to $249,000, an increase of 12.9% over April 2016.
The region has less than two months’ worth of for-sale homes, according to VegasInc. The 5,083 single-family homes for sale without an offer in late April was 31% less than the previous year, while for-sale condos and townhouses were down 71% for the period to 639 properties.
- Homes are selling faster in 2017, following a 2016 that saw sales increase by more than 3,000 units.
After years of booming activity, the Great Recession hit Sin City hard, with developers halting major commercial projects. But three major projects — the Raiders Stadium, an expansion of the city’s convention center and a new Wynn resort — are expected to jumpstart the market.
The housing market is recovering as well, including affordability that is drawing buyers from pricier cities in California and elsewhere. Still, only 0.6% of homes in Las Vegas have returned to pre-recession values, Trulia found, the lowest percentage of all major U.S. metros.
One ongoing challenge to housing supply is the number of underwater homeowners: Las Vegas led the country in borrowers in negative equity, with 16.6% at the end of 2016, the Las Vegas Review-Journal reported. Investors also are holding on to properties they purchased for bargain prices during the recession.
Rental prices also are climbing in Vegas, with rents for three-bedroom, single-family homes rising more than 3% from Q1 2016 to Q1 2017, a percentage point higher than the national average. Apartment rents went up 5% for the period in Vegas and increased 15.5% (one-bedroom) and 11.7% (two-bedroom) in the suburb of Henderson during that time.
Foreclosure rates in Las Vegas rank 12th-highest among the country’s largest cities, with one in every 304 homes versus one in every 569 homes nationwide getting a foreclosure filing in Q1 2017. Still, the city saw a notable drop of 29.5% in foreclosure filings from Q1 2016 to Q1 2017.
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