House hunters in Las Vegas have been asking the same question for years: when will home prices drop?
The answer: they’re already dropping.
After several years of extreme appreciation and month after month of record-breaking prices, home values in Las Vegas are starting to rebound. Let’s take a closer look.
Home prices were excessively high
Homes in Las Vegas hit their highest-ever price in May, with a median home value of $482,000. Compare that to the pre-pandemic value of $287,000 in December 2019, and you’ll see an increase of $195,000—or about 68%.
This dramatic rate appreciation rate coupled with other market conditions has led some experts to question whether a crash looms. Here at the Joe Taylor Group, we predicted a market correction rather than a market crash—and that’s what we’re seeing now.
Home prices have dropped for two consecutive months
On August 12th, Las Vegas Review-Journal released a report that home prices in Las Vegas have fallen for the second month in a row. The first dip happened in June, followed by a second in July. The median price for single-family homes last month came in at $465,000, down 3.5% in just two months.
Home prices will continue to fall as market balances
The Las Vegas market is cooling just like the rest of the United States—partially due to mortgage rates rising and a reduction in homebuying competition. We’re not in a buyer’s market yet, but trendlines are turning in that direction. Inventory is growing, median prices are dropping, and the number of homes on the market at month’s end without an offer is on the rise. These trends will likely continue until the levels of supply and demand balance and a more stable appreciation rate is reached.
Looking to buy or sell in a changing market?
We can help.
Buying? We’re ready to help you find your dream home. The market is still hot, but price reductions and inventory growth are in your favor. Let us find you exactly what you’re looking for and negotiate the best possible terms for you.
Selling? We can’t wait to apply our decades of experience to make your sale a success. Hiring a stellar real estate agent is more critical than ever as the market changes, because you’ll need to strategize and market like a professional. Getting top dollar for your home isn’t out of the question—you just need a team of experts on your side.
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We can help you achieve your homeownership goals in Las Vegas. Give us a call or text today at 702-789-6398 to find out we can help you find your dream home.