The Las Vegas housing market reached a milestone in May as the median sales price hit $300,000.
Monthly statistics released Monday by the Greater Las Vegas Association of Realtors showed that the median price of all homes sold in the month jumped 1 percent from $297,000 reported in April to reach the $300,000 mark.
The news drew mixed reactions from John Restrepo, principal with the Las Vegas research firm Restrepo Consulting Group LLC.
"It's good news if you own a house already," he said. "You are building wealth."
The effect the soaring prices are having on the labor market is less clear, Restrepo indicated.
"Overall, it's not good news," he said. "Housing affordability is getting to be an issue."
He pointed to recent housing affordability index figures. In 1998, he said, the Las Vegas index number was 2.7, meaning the median home price was 2.7 times the median household income.
"In 2004, the housing index for Las Vegas was 4.88," Restrepo said. "That means home prices are nearly five times the median household income. ... That is not a good indicator."
Rising home prices, he said, have been offset in recent years be record low mortgage interest rates. That will eventually change, Restrepo warned.
"Interest rates are not going to stay low forever," he said.
In May, 3,096 homes were sold, up from the 2,957 units sold in April, an increase of 4.7 percent, based on records from the GLVAR's Multiple Listing Service.
The number of homes sold in 30 days or less increased to 48.4 percent, up from 45.1 percent in April. The rate is still down, however, from the 82 percent recorded in May 2004.
At the end of May, 15,066 homes were listed for sale, up 1.6 percent from April. The median list price of available units was $359,900, up 1.4 percent from April and up 13.4 percent from May 2004.
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