Last September saw housing prices rise at the fastest pace in more than three years here in our valley with our city up nine percent compared to the nation at six percent. Home buyers continue bidding up prices because, so few properties are available. The number of houses for sale in the valley for September were the fewest for that month since 2001, according to the National Association of Realtors. Besides Las Vegas, Seattle and San Diego reported the highest year-over-year gains. Home prices rose almost 13% in Seattle compared to 9% in our valley and 8% in San Diego. Ever since our housing prices bottomed out here in 2012, we have been making a significant comeback in terms of productivity in the market.
As we are all aware, Las Vegas was a poster child for the mid-2000s bubble with home prices sky rocketing and booming construction. As far as today sales prices are not rising as fast as they did during the peak of those years but is still a reason for concern as shrinking inventory and rising demand are pushing prices up. Unemployment is low and the economy especially now, is growing at a solid rate which leads to more demands of homes. Another thing that is helpful is that mortgage rates are unusually low with the average rate on a 30-year mortgage under four percent! On the flip side of this Americans are remaining in their homes longer according to a survey by the Realtors and many are reluctant to sell because there are so few homes to buy. The construction of new homes jumped nearly 14% in October to the fastest pace in a year. However, home builders are struggling to find workers and the land that they need to ramp up construction more quickly. Builders here in the valley closed over 880 new home sales in Clark County in September, bringing the total up 16 % from the same nine-month period last year according to Home Builders Research. Ending on a positive note, the median sales price of September’s closings was a record $355,000, up 10% year-over-year!