The Las Vegas Review-Journal reports that more than 13 years after the housing market peaked, home prices in Las Vegas in September nearly matched pre-recession highs.
However, the Review-Journal states the gap is bigger than it appears when inflation is accounted for, leaving prices “way off” from pre-recession highs.
The median-sales price of single-family homes was $310,000—an increase of 1.6% from August and an annual increase of 3.3%, according to the Greater Las Vegas Association of Realtors (GLVAR).
A total of 2,750 houses were sold last month, which is down 13.2% from August but a 12.9% jump from September 2018. Continually, 7,334 single-family homes were on the market without offers at the end of September—down 5.6% from August and up 19.3% annually.
The Review-Journal stated Las Vegas was “ground zero” for the real estate bubble in the mid-2000s, mostly due to growing property values, rising construction, and home flipping. According to the GLVAR, the average price of single-family homes peaked in June 2006 at $315,000—$398,300 in today’s money—nearly $88,100 above last month’s average.
Southern Nevada was also hit hard during the Great Recession as foreclosures, falling property values, and abandoned real estate projects. The median-sales price of a single-family house hit $118,000 in January 2012, which is 62.5% drop from the peak.
The Review-Journal reported last month that the housing market in Las Vegas was stabilzing for the first time in decades.
The report found that buyers purchased 3,168 single-family houses in August, which is up 0.3% in July and an annual increase of 3.1%. Fewer homes were on the market in August at 7,766, which is down 0.5% from the prior month.
Also, the Review-Journal states that Las Vegas home prices have been a “roller coaster” over the past 15 years. Janet Carpenter, President of the GLVAR, said prices soared in the mid-2000s, fell in the Great Recession, and have been “ramping back up” since 2012.
“If you look at it that way, I guess you can say we’re coasting along right now,” Carpenter said.