Home sales, construction on the upswing, but industry ‘has a long way to go’

Southern Nevada’s homebuilding business had another good showing last month with rising sales and construction plans.

Local builders sold 696 new homes in May, up 74 percent from May 2012, according to a new report from Las Vegas-based Home Builders Research.

The median price of last month’s sales was $254,550, up 32 percent from a year earlier.

Construction plans also remain on the upswing. Local builders pulled 809 permits last month — an “impressive” tally, the report said — up 22 percent from May 2012.

But, as usual in his monthly report, Home Builders Research President Dennis Smith issued a note of caution. The industry, he said, is showing big year-to-year gains because it’s rebounding from historic lows.

“The housing market is definitely going in the right direction, but it still has a long way to go before anyone should believe the Las Vegas housing market is on ‘solid ground,’” Smith wrote.