New home sales in Las Vegas up in May
Las Vegas-area new home sales rose in May, as sales continued to rebound from the 30-year low experienced in 2011.
Home Builders Research Inc. on Sunday reported that builders sold 401 homes locally in May, up from 347 in April and 291 in May 2011.
The median price of recorded new home sales was $193,504, down from $200,350 in April but up 1 percent from one year ago.
During the first five months of 2012, 1,617 new homes were sold, up 306, or 23 percent, from the same time in 2011.
During the same period, builders have been issued 2,246 new home building permits, up by 681 permits, or 44 percent, from the same time in 2011, Home Builders Research said.
Dennis Smith, president and CEO of Home Builders Research, said in his monthly report that new home sales are rising thanks to:
• “Incredibly low” interest rates.
• Prices being at their most affordable level in almost 15 years.
• The supply of existing homes for sale continuing to tighten because of a slowdown in foreclosure sales.
“The housing market in Las Vegas appears to be on the verge of a period of robust, sustained growth,” Smith said in Sunday’s report.
With more homes being built, employment may pick up in the local construction industry, Smith said.
“We are told of some hirings, but they are small in number relative to how many jobs were lost during the last four years,” Smith wrote in his report. “We are moving in a positive direction, hopefully translating to better times for all.”