Las Vegas Home Prices Gain Again As Market Draws Institutional Investors
- Oct 31, 2013
Now that the final summer numbers for the nation’s housing market are in, it is clear that Las Vegas outperformed the rest of the nation once again in August. The Standard & Poor’s Case=Shiller Index shows that home prices for the Las Vegas market grew 29.2 percent compared to August 2012.
According to the Associated Press, that is more than double the 12.8 percent increase achieved by the 20-city Index during the 12 months ending in August. All 20 markets recorded year-over-year growth. However, the Las Vegas housing market still has a long way to go before catching up with pre-recession levels. Prices are still 47 percent lower than peak values.
In the office market, the fast pace of price growth is already starting to lessen the appetite of institutional investors. In the single-family housing market, however, the reverse is happening, as institutional players are increasing their activity. According to a RealtyTrac report cited by VegasINC magazine, institutional investors accounted for a quarter of all Nevada residential sales in September, up from 14 percent during August.
During the first half of 2013, institutional investors accounted for 15 percent of home purchases in the Las Vegas Valley. The prices still outpace last year’s figures considerably, but the market is showing signs of cooling. As VegasINC noted, September was the first month this year to record a month-over-month price decrease.