The lights are on but is anyone betting on vegas property?

According to Clear Capital’s recent figures, Vegas house prices surged 31.2 per cent year-on-year in July 2013, the first metro to top 30 per cent growth since the start of the recovery.

But while the lights are clearly turned on, those high house prices seem to be deterring buyers from betting on the market, suggests Global Property Guide.

Indeed, in August, Zillow found that the city’s median home value jumped 30.6 per cent year-on-year, far ahead of the national average of 6.6 per cent. According to the Greater Las Vegas Association of Realtors, house prices have increased for 19 months in a row.

GLVAR said, though, the total number of existing properties sold in August totalled 3,539, down from 3,688 total sales in August 2012. Compared to July, single-family home sales during August increased by 0.1 percent, while sales of condos and townhomes decreased by 13.9 percent. Compared to one year ago, single-family home sales were down 4.3 percent, while condo and townhome sales were down 2.8 percent.

Even with the growing house prices, GLVAR notes that local home prices are still well below their June 2006 peak of $315,000. Nonetheless, buyers appear to be deterred by the climbing values, while rising inventory levels have seen rental increases slow down.

 A similar trend has been found nationwide b y the National Association of Realtors, with sales of US property dipping 1.9 per cent.

Steve Hawks, an agent for Platinum Real Estate told the Las Vegas Sun that last year, 50 institutional investors were buying homes in Las Vegas. Now, there are just three.

Zillow’s latest report welcomed signs of cooling activity within the US market as a whole:

“We're relieved to see more noticeable signs of cooling in the market. If home values continued to rise as they have, relatively unchecked, we would almost certainly be headed into another bubble cycle, and nobody wants that,” commented Zillow chief economist Stan Humphries.

Hawks added: “As soon as the prices drop again, they'll start buying again.”