The numbers are in and May finished out as a good month for Las Vegas real estate. More homes are now selling in the $300,000 price range than last year, which illustrates signs of recovery. The average sales price did increase slightly to $234,970 in May due to the higher price point sales.
The distressed market continues to recede. Non-distressed, or traditional sales now make up 76% of all closings in Las Vegas. Short sales are down to 13% of closings and REO, or bank owned make up only 11%. The average sales price of REO sales are up, while the average short sale price declined.
Another thing that's down is cash buyers which now account for 40% of closings when a year ago, they made up more than half the closings. 31% of closings were completed through the use of a conventional loan in May while 7% were an FHA federally insured loan.
The supply of homes on the market had been increasing in recent months and had gotten up to a five month supply, but last month the supply of single family homes dropped to 2.4 months. Townhomes and condos are down to a 3.9 month supply.
The neighboring Phoenix market is also showing signs of recovery. Its average sales price is now up to $278,434 and the market is now made up a 89% non-distressed sales. The Phoenix area has close to a three-and-a-half months supply of homes.
So this year is a bit of an up and down ride so far when it comes to real estate, but if predictions come true, the market will end up with an overall increase of 4 - 6% by year's end.