Las Vegas Home Prices Rise 6.5%
Las Vegas home prices rose 6.5% over the same month a year ago, according to real estate analytics firm CoreLogic. The increase through September was slightly better than the 5.6% average the nation experienced. It was the 31st straight month that metropolitan area home prices increased on a year-over-year basis.
However, the five states with the largest peak-to-current declines are still led by Nevada with 36.6%. Florida is a close second, with a decline of 34.1% from the top of the market. CoreLogic also estimated that home prices should rise an additional 4.6% across the U.S. in the next year.
A decline in foreclosures listed for sale at cheaper prices has slowed the volume of home sales along with normal seasonal factors, including the up-coming holiday season. But near record low mortgage rates should continue to push buyers towards making home purchases.
“There has been a clear bifurcation in home price growth for lower-end versus upper-end properties in 2014,” said Sam Khater, deputy chief economist at CoreLogic. “As of December 2013, both lower-end and upper-end property prices were up 9.7% on a year over year basis. As of September, lower-end prices were up 9.4% but upper-end prices were up only 4.5%.”
The CoreLogic HPI (Home Price Index) Forecast is a monthly projection of home prices using a proprietary index and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households in each state.
“Home prices continue to rise compared with this time last year but the rate of growth is clearly slowing as we exit 2014,” said Anand Nallathambi, CEO of CoreLogic. “With more positive macro-economic trends emerging in the U.S., we are forecasting moderate price growth for 2015.”
Median home prices in the Las vegas region dropped below $200,000 in October, the Greater Las Vegas Association of Realtors reported. Median Las Vegas home prices, which are a reflection of the mid-way point of sales prices declined a slim 1.3% from September, but were still 8.1% above a year ago.
The median price could decline even more as the volume of home sales drops during winter months, the association said as the market slowly recovers with expected flucuations. Median Las Vegas home prices remain well off their June 2006 peak of $315,000, and above the January 2012 trough of $118,000.