Condo and townhouse prices in Southern Nevada are experiencing an upward trend, with the median price reaching $307,000 in May, marking a 1.4 percent increase from April and a 4.1 percent rise compared to the previous year. Despite the price increase, only 559 units were sold in May, a slight increase from April but a significant 19 percent drop from last year.
Single-family home prices in the region have remained stable at $480,000, close to the record high set earlier in the year. The disparity between condo and home prices has led many buyers to consider more affordable options like condos and townhomes, especially first-time buyers and those on tighter budgets.
Robert Little from Re/Max Advantage points out that while there is a rebound in condo sales, the market remains constrained, with a notable increase in inventory and overall sales down. Higher mortgage rates have dampened buyer demand, providing potential buyers with more opportunities to negotiate due to the softening prices. Sellers are advised to price competitively to stand out in the expanding inventory.
LVR President George Kypreos cautions against overinterpreting monthly figures, though he acknowledges that the slight increase in condo sales suggests buyers are viewing them as a more affordable entry into the housing market amidst high home prices and elevated mortgage rates.
The inventory of unsold homes has risen significantly, with 6,646 homes on the market without offers, representing a 71.8 percent increase from last year. Similarly, unsold condos and townhomes have surged by 89.6 percent from the previous year.
Overall sales of homes, condos, and townhomes combined in Southern Nevada fell by 13.1 percent from last year, with 2,646 units sold in May. Nationally, investor activity in the real estate market shows a slight increase in home purchases, but a decrease in condo purchases, as investors are wary of potential value loss in the slowing condo market.