Standard & Poor index shows Las Vegas home prices up

Las Vegas home prices gained 1.9 percent in May from the previous month, according to Standard & Poor’s/Case-Shiller index of 20 large cities. The nationwide average was 2.2 percent.

In the index, Chicago had the highest gain, at 4.1 percent; Detroit had the lowest at 0.4 percent.

The year-over-year gauge provides better indications of trends in prices, according to the S&P/Case-Shiller group. Twelve of the 20 cities in the index showed a year-over-year gain, led by a 12 percent increase in Phoenix. Atlanta led declines, with a 15 percent drop. Las Vegas registered a 3.2 percent year-over-year drop.

The S&P/Case-Shiller Home Price Indices are calculated monthly using a three-month moving average and published with a two-month lag. That’s a concern to one residential appraiser in Las Vegas.

“The Case-Shiller model is looking at Las Vegas from 10,000-foot elevation,” said Kelly Wade. “The data is not current. It’s not looking at the ground level. Most markets have spiked back 10 percent or more. Go try to buy a house in Green Valley Ranch. There’s no inventory under $300,000 in that area.”

Wade said he’s seen a sharp increase in home prices, with escrow closings in the past 30 days indicating a 10 percent jump in many submarkets.

Las Vegas-based Home Builders Research reported a median resale price of $120,000 in June, an improvement of $10,000, or 9.1 percent, from a year ago.

Also, data from the Greater Las Vegas Association of Realtors consistently shows rising prices for new listings and sales over the past several months.