In April 2022, homebuilders in Southern Nevada recorded their second-highest April for new-home sales over the last five years. However, rising mortgage rates have slowed the momentum from the first quarter of 2022, especially with first-time homebuyers.
April saw 913 net sales that show a drop of about 30 percent from March and were down 25 percent from April 2021 when there were 1,215 sales, according to Las Vegas-based Home Builders Research.
While net sales were down in April, they were still higher than the 878 in April 2018; 842 in April 2019; and 244 in April 2020 when COVID-19 shut down the homebuilding industry.
That doesn’t mean there aren’t concerns going forward about where home sales are heading. To lessen any concern, the 30-year fixed rate was as high as 4.87 percent in November 2018.
Experts agree this is not going to have a big effect on people who need to move or want to move.
Based on net sales numbers, those buying lower-priced homes appeared to have been affected the most, while higher-priced home sales were impacted the least. Some of that is attributed to rising prices with the year-over-year gain between April 2021 and April 2022 at 19 percent for single-family homes. That’s been driven by higher labor and material costs and land prices.
Homebuilders all agree that people are still moving here, and our population is still growing. They still have to build and sell homes. It’s not a reset. Nobody is panicking and talking about dropping prices or offering incentives just because of a few weeks of lighter sales. Homebuilders need to catch up with supply chains, anyway. When interest rates stop increasing at this pace, more people will jump back into purchasing newly built homes.
Keep in mind that whether you are interested in buying a home or selling a home, a Realtor should represent you– this person is working for your benefit and will help you navigate through the buying or selling process. We have celebrated selling both New and Resale Homes for over thirty years…..
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Thanks and make it a terrific day…………The Smith King Team