In recent years, the state’s rapid population growth has led to significant housing demand, which has been reflected in the House Price Index published by the Federal Housing Finance Agency. From 2013 through 2018, annual growth rates in the Purchase-Only House Price Index in the state ranged between 9.5 percent and 22.5 percent, regularly putting Nevada at or near the top of state rankings. In 2018, the end-of-year growth rate in Nevada was 10.7 percent, the second fastest growth rate among all states. By the end of 2019, the index’s annual growth rate dropped to 3.7 percent, which was the ninth lowest rate in the country.

In Southern Nevada, home price growth trends have also slowed compared to prior years. In December 2019, the median closing price of an existing home stood at $280,000, up 7.7 percent from a year earlier, according to SalesTraq. That monthly year-over-year increase was the highest since February 2019 in a year that was generally marked by more modest price growth. On a trailing 12-month average basis, the median existing home price grew by 6.1 percent in 2019, the slowest year-end growth rate since 2011. Total existing home sales in 2019 dropped 4.2 percent to 45,841, continuing the sales volume decline that carried through most of the year. 2019 was the second consecutive year of declining existing home closings, suggesting that longer-term trends of rising prices and limited inventory have begun to affect sales activity.

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