The real estate market is changing.
During the pandemic, work-from-home availability led many to leave expensive metro areas in favor of cities with affordable real estate—like Las Vegas. The sudden spike in demand combined with record-low interest rates sent inventory down and competition up. Appreciation rates and home prices soared while homes sold in less than a day on the market—but that’s all changing.
Inventory is rising, mortgage rates are driving demand down, and the market is starting to cool.
In Las Vegas, the market is cooling faster than it is in other places. Sellers are slashing prices while buyer competition has reached its lowest point since 2019. What does this mean for the market? Let’s take a look.
Competition has been fierce
Home prices and buyer competition have been escalating in Las Vegas since before the pandemic. But in the last two years especially, population growth and low interest rates have driven high demand, record home appreciation, and extremely low inventory. Competition among buyers has remained intense, with local news outlets reporting on the issue as residents struggle to find a footing.
That competition continued well into 2022. In a balanced market where supply and demand are equal, there is a six-month supply of homes available—meaning that it would take six months to sell every home on the market at the current rate of sale. In March, Las Vegas Review-Journal shared that Las Vegas home inventory was hovering consistently around a one-month supply. As late as May, the outlet was reporting that inventory was “dramatically low” and that supply, home prices, and the overall market environment wouldn’t change any time soon.
But now, competition is dissipating
On July 10th, LVR posted that home prices in Las Vegas saw their first monthly decline since 2020. Prices have declined more in the weeks since, with an August 12th report showing that median home values are down 3.1% since June.
Prices aren’t the only metric by which to measure the market. Inventory is also rising, while sales are slowing down. Brandon Roberts, President of Las Vegas Realtors, said “we haven’t had this many homes available for sale since the summer of 2019.” At the end of July, there were 7,331 single-family homes on the market without an offer. That’s a 143.8% increase from this time last year.
Why? Competition is waning. High values and rising mortgage rates have priced many buyers out of the market at the same time sellers have jumped in, hoping to capitalize on the equity from the last two years.
What does this development mean for homebuyers?
While homebuyers still have high prices and high mortgage rates to contend with, lower competition means the ability to negotiate better prices and better terms. The last two years have seen homes selling in a day or two and buyers having to offer cash and wave contingencies to have a chance, but those days are over. Homes are sticking around longer with fewer offers, so you’ll be able to consider your options carefully, inspect them thoroughly, and make an offer you think is fair.
What does it mean for sellers?
Sellers need to get ready to put their best foot forward. Among a higher number of homes on the market and fewer buyers, strategy is key. But don’t worry. Demand in Las Vegas is still high, and the population is growing. Many have relocated here from higher-priced markets like California, and homes are still selling—the rate is just returning to normal while prices fall from the sky-high values of a few months ago.
That means to stay competitive, you’ll need to price your home correctly, perform repairs and upgrades, and above all, hire an expert real estate agent. The right agent has weathered every kind of market Las Vegas can throw, and they know how to prepare and sell a home under any conditions. You’ll want a class-A marketing team and an agent working with your best interest and your goals in mind for a successful and stress-free experience.
Ready to navigate a changing market?
We’re ready to help. At the Joe Taylor Group, we’re Las Vegas born and raised. We live, work, and play here, and we know the market inside and out. There’s no one better prepared to help you buy or sell a home in a swiftly changing market. Get in touch to get started.
PS - not ready to jump into the market, but still have questions about where it's headed? Send us a DM! We're always happy to chat.