Southern Nevada home prices on the rise, amid a tight supply

The median home price in Southern Nevada rose in May as supply remained tight, the Greater Las Vegas Association of Realtors reported.

The regional median home prices were up 8.5 percent at $229,250 in May, up from $211,250 a year earlier, the association said.

For condominium and townhouses, including high-rises, median home prices were $118,000 in May — up 5.4 percent from $112,000 in May 2015.

“As we head into the summer, we’re seeing more demand for the limited number of homes that are available for sale,” association President Scott Beaudry said. “Demand is exceeding supply in most parts of the country, but I think it’s more pronounced here in Southern Nevada. Our tight housing supply seems to be driving up prices, especially for entry-level homes. Even with our limited inventory, we’re still selling more homes so far this year than last year.”

Beaudry said May’s rate of regional home sales was 10 percent ahead of the pace in May 2015, when 38,578 single-family homes, condominiums, townhomes and high-rise condos were sold. That number was higher than 2014, but lower than the previous five years, the association said.

Southern Nevada had less than a three-month supply of homes for sale, when a six-month supply is considered normal, Beaudry said.

The number of distressed sale in Southern Nevada continued to decrease — 4.5 percent of local sales were short sales in May, down from 7.3 percent a year ago.

Bank-owned sales in May were 6.1 percent, down from 8 percent a year earlier.

Single-tenant Home Depot building sells for $23 million

Southern California-based LBG Real Estate Cos. and partner Aviva Investors Real Estate Capital Partners I-A LP said they sold a joint-venture building, with more than 102,000 square feet and 9.07 acres, at 1030 W. Sunset Road in Henderson to an undisclosed buyer for just more than $23 million.

The pair bought the property, now occupied by a Home Depot, in 2012.

“Knowing that Home Depot would not vacate the property based on LBG’s knowledge of the Henderson retail market and available developable land in the submarket that would be suitable for Home Depot, this acquisition provided a unique opportunity for LBG to acquire a strong single-tenant property on a short-term below-market-rent lease and do a ‘blend and extend’ to create value,” LBG principal Leslie Lundin said.

Retail space improves, report

The retail sector improved marketwide in the first quarter, reflecting an improving local economy, a CBRE report suggests. The average asking lease rate increased and vacancy decreased. Net absorption was positive.

There were no construction completions in the first quarter, but more than 707,000 square feet of new developments and redevelopments were proposed or under construction. The report showed just more than 687,000 square feet was leased in the first quarter. Leasing increased as big-box space was leased to Cracker Barrel, Dave and Busters, Crate and Barrel and others.

Mixed-use space had the largest vacancy decrease quarter-over-quarter — falling by 160 base points. Average asking lease rates increased marginally, marking the first positive in nine quarters.

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