Las Vegas saw the largest annual increase in home prices of 20 major metropolitan areas in the US, according to the S&P CoreLogic Case-Shiller index released in late July by S&P Dow Jones Indices.
The S&P CoreLogic Case-Shiller 20-City Composite Home Price NSA Index seeks to measure the value of residential real estate in 20 major U.S. metropolitan areas: Atlanta, Boston, Charlotte, Chicago, Cleveland, Dallas, Denver, Detroit, Las Vegas, Los Angeles, Miami, Minneapolis, New York, Phoenix, Portland, San Diego, San Francisco, Seattle, Tampa and Washington, D.C.1
Home prices in Southern Nevada increased by 6.4 percent year-over-year (as of May 2019). The national home price increase was only 3.4 %.
One important fact from the report is that the growth in home prices has slowed over the past few months. This might mean an overall slowing home prices and softening of the home market for the rest of 2019 and 2020.
A similar report from the year before (August 2018 over August 2017) showed a 14% increase year over year. This year's increase is less than half of last year's.
"Thwarted by climbing prices for years, buyers are no longer willing to pay any price. There were too few homes on the market and buyers were unable to find houses that fit both their needs and their budgets, so they took a breather," Matthew Speakman, an economist with Zillow, said in a statement in July.
Analysts almost universally agree that the slowing in home prices is due to buyers' unwillingness to pay extremely high prices for homes the way that everyone did in 2007. There's a reluctance to participate in a market that is massively over-inflated and not likely to allow buyers to recover their investment.
This sluggishness is even more marked in other markets. New York, LA, San Diego, and San Francisco only saw a 2%, while Seattle, a perennial hotspot, saw a drop of 1.2%. For Seattle, that a massive drop from last year's 12.6% increases.
There is a move by home buyers to go from purchasing a single family home to a townhouse or a condo. This can provide them with all the same creature comforts with lower costs and often more support from the building's management.