Hey there, home shoppers and sellers! If you’re wondering whether now is the time to buy or sell a house in Las Vegas, you’ve come to the right place. According to the latest data from Zillow, the Las Vegas housing market is currently favoring sellers, but the intense highs we saw during the pandemic have cooled off a bit. Let’s break down what’s happening.
The Seller’s Market Breakdown
Las Vegas ranks as the 35th strongest seller’s market in the country with a score of 62.9 out of 100 on Zillow’s Market Heat Index. This index measures the balance between housing supply and demand. In comparison, Buffalo, New York, leads the nation with a scorching score of 118.1, followed by San Jose, California (111.6), and San Francisco (111.2). On the flip side, New Orleans is currently the biggest buyer’s market with a score of 39.1.
What’s Making Vegas a Seller’s Market?
Cities scoring 70 or more are considered strong seller’s markets. While Las Vegas doesn’t quite hit that mark, it’s still leaning heavily towards sellers. This is based on factors like active home listings, the share of listings with price cuts, and how quickly homes go under contract.
George Kypreos, a real estate agent with GK Properties, describes the current market as a “soft seller’s market.” He explains, “There are fewer homes for sale than there are buyers, but sellers still need to negotiate.” So, while you might not see the frenzied bidding wars of pandemic times, sellers still have the upper hand.
A Look Back at Peak Seller Times
Las Vegas’ housing market was at its strongest for sellers in April 2021 with a score of 86.6, followed by February 2022 at 82.2. The city hasn’t been in a buyer’s market since the index began in 2018 but did experience some neutral market periods between 2018 and 2019, and from July 2022 to February 2023.
Current Market Conditions
With mortgage rates hovering above 7%, the market is definitely feeling a bit of a chill. Last year marked the worst for sales in the Las Vegas Valley since the Great Recession of 2008-09. Kypreos notes that high rates are dampening sales, making buyers think twice about their purchases.
Despite this, some buyers are starting to adjust to the higher rates. Matt Hennessy, a Las Vegas-based mortgage adviser, says buyer activity has picked up slightly as people get more comfortable with current rates and the idea of refinancing in the future. “With limited inventory, homes are still appreciating, and waiting might not be the best strategy,” Hennessy explains.
The Bigger Economic Picture
The U.S. economy and the Federal Reserve’s actions also play a significant role. The May jobs report exceeded expectations, suggesting that potential rate cuts are less likely in the near term. Orphe Divounguy, a senior economist with Zillow, points out that a strong job market can drive inflation, keeping mortgage rates high. “Buyers are scooping up everything sellers can dish out and then some, leaving fewer choices and keeping prices up,” he says.
What Does This Mean for You?
For sellers, it’s still a good time to list your home, but be prepared for more negotiation than during the pandemic peak. For buyers, while it’s a challenging market, there are still opportunities, especially if you’re open to refinancing down the line.
In summary, Las Vegas is still a seller’s market, but with a softer edge. Whether you’re buying or selling, staying informed and flexible will be key to navigating this dynamic market.
Happy house hunting, and good luck out there!
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