After nearly a decade of constant home price growth in the Las Vegas Valley, home prices in August were flat versus June and July, but were still up 3.4% over the year before. However, in the resale market there has been a steady decline in the housing supply since October. If supply continues to decline it could lead to a higher increase in Las Vegas home values for 2020.
"If you look at a graph of our local home prices over the past 15 years or so, it looks like a roller coaster, soaring through the mid-2000s and then falling during the Great Recession before ramping back up from 2012 until now. If you look at it this way, I guess you can say we're coasting along right now," said Janet Carpenter, GLVAR president told KLAS-Channel 8.
Median townhouse and condo prices rose even more over the year before, 4.1%, up to $177,000 year over year.
A major factor for the change is that there are more homes coming online for sale. New housing projects delivering new homes and some homebuyers deciding that they're ready to sell have steadied prices for the last several months, a trend that appears likely to continue.
Every month, new major building projects are announced. This is a change from prior years where builders who had been burned during the Great Recession weren't doing any major building. Now, after more than seven years of steady growth in prices and the local population, builders are beginning to see that they are likely to make money with new homes.
Local homeowners are seeing a market where they are probably going to get the most for their home that they can for the next few years. Growth in home prices will continue, but much more slowly than recently. This has those who were considering selling putting their homes up on the market, catching the prices at the crest of the wave and avoiding any potential shrinkage in prices.