Las Vegas home prices show effects of headwinds for buyers

Southern Nevada home prices inched up in August as prices nationally also rose slowly, a new report shows.

Las Vegas Valley home prices in August were effectively flat from a year earlier, rising 0.26 percent, compared with a 1.51 percent gain nationwide, according to the S&P Cotality Case-Shiller index released Tuesday.

U.S. home prices continued to slow, with August showing the weakest annual gain in more than two years, said Nicholas Godec, head of fixed income tradables and commodities at S&P Dow Jones Indices, in the report.

Mortgage rates have largely pushed lower in recent months, giving homebuyers some relief on borrowing costs, but rates are still elevated compared with what buyers have faced over the past 15 years.

Godec said that mortgage rates “continue to weigh on buyer demand,” as high borrowing costs and near-record-high prices have crimped sales volume.

In Southern Nevada, homebuilders’ sales have fallen sharply this year amid these financial headwinds for many would-be buyers.

Last month, builders closed 829 home sales, down 19 percent from a year earlier, and landed a median sales price of $529,140, up almost 4 percent year-over-year, according to Las Vegas-based Home Builders Research.

On the resale side, however, sales totals last month were up from a year earlier amid a dip in prices.

Buyers picked up 1,884 previously owned single-family homes in September, up 5.2 percent from the same month last year, and paid a median price of $470,000, down 2.1 percent from a year earlier, according to trade association Las Vegas Realtors.

Las Vegas’ all-time high median, $485,000, was reached several times this year, the group noted.

Ben Ayers, senior economist with insurance giant Nationwide, wrote Tuesday that many markets have more sellers than buyers and that house prices are cooling, easing affordability concerns.

He also wrote that falling mortgage rates should boost demand from buyers who have been waiting for cheaper borrowing costs, adding this should in turn prevent a sharp drop-off in prices.

Contact Eli Segall at esegall@reviewjournal.com or 702-383-0342.