Rising Las Vegas Home Prices Lead U.S.: S&P/Case-Shiller Index

The Las Vegas housing market is going from strength to strength in terms of prices, being one of the driving forces behind what could shape up as a positive year for the U.S. The city has once again far outpaced the national average which, according to the Standard & Poor’s/Case-Shiller home price index, stood at about 12.1 percent over the values recorded in June 2012. Las Vegas saw very encouraging increases in home prices, with a year-over-year increase of 24.9 percent.

Las Vegas housing prices continue to rise and are driving a positive year nationwide. From June 2012 to June 2013, local home prices increased 24.9 percent, according to the Standard & Poor’s/Case-Shiller home price index.

That performance again far outpaced the 12.1 percent national average over the same period. Other markets that have firmed up considerably are San Francisco, where prices increased 24.5 percent, and Los Angeles and Phoenix, which each posted gains around 20 percent.

“National home prices rose more than 10% annually in each of the last two quarters,” noted David Blitzer, chairman of the index committee at S&P Dow Jones Indices, in a statement. “However, the monthly city-by-city data show the pace of price increases is moderating.  The Southwest and California have consistently led the recovery with Las Vegas, Los Angeles, Phoenix and San Francisco posting at least 15 months of gains.”

Las Vegas housing prices look better still considering that growth rates slowed from May to June in 14 of 20 cities surveyed. According to The Las Vegas Review-Journal, the cities that have seen the largest increases are those that have experienced the worst downturns a few years ago. Prices increased only modestly between June 2012 and June 2013 in New York City (3.3 percent) and Cleveland (3.5 percent). That said, prices in New York City rose 2.1 percent in June, the best month-over-month gain since 2002.

Standard & Poor’s/Case-Shiller index covers around half of the housing stock in the United States. The buying trend in residential real estate is believed to stem from a slight uptick in employment during the past year, and the strengthening of tech markets across the country.