Nevada’s housing market continued its bullish run with the most recent data; as prices continued to surge, permitting activity climbed, and sales volumes remained elevated. However, recent developments in the macroeconomic scene suggest the market may face headwinds in the future.

The housing price index in Nevada increased 4.6 percent quarter-to-quarter in the first quarter of 2013, or 22.0 percent from the first quarter of 2012. The Case-Shiller Index, which tracks price changes within metropolitan areas, is up 2.5 percent from March to April and 22.3 percent from last April in the Las Vegas market. Both metrics demonstrate respectable price appreciation and elevated demand levels.

Permitting activity has also increased significantly in the state, with 1,172 homes approved for construction during May. The trailing 12-month series is also steadily rising, up 4.8 percent since April and 41.9 percent year-over-year to 9,302 permits issued during the past 12 months. Washoe County reported tremendous growth (in percentage terms) during the past 12 months with 1,292 permits issued; home building activity has increased 106.4 percent year-over-year, or by 666 permits. Overall, there are 3.0 homes being permitted for every 1,000 residents in the past year in Washoe.

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