The housing market in Southern Nevada has always been a huge part of the economy. After all, owning a home is the American dream, and for most of us, it’s the biggest single investment we make.
It is quite understandable many people get concerned when market conditions change, especially when this swing seems sudden.
This year 2023, we’re seeing this type of shift. In the last prior years, we have seen home prices post double-digit gains from one year to the next, The Las Vegas Realtors (LVR) reported that local home prices have now reverted to where they were one year earlier.
A portion of this downturn is seasonal. Home prices in our area traditionally go up during the spring and summer, Whereas they might stagnant during the fall and winter. December and January are usually the slowest months for local home prices and sales.
This recent change in home-buying activity is due to the rise in mortgage interest rates, which began increasing in mid-2022 as part of an effort to curb inflation.
2023 began with the average rate on a 30-year home loan at just under 6.5 percent. This percentage is more than double what it was a year earlier, when mortgage rates were averaging about 3.2 percent, according to mortgage buyer Freddie Mac.
This makes it more expensive and difficult for people that are looking for a mortgage to purchase a home they can afford. This is the case for especially first-time and entry-level buyers.
You can see this reflected in local home sales. With the market slowing down in the second half of 2022, we didn’t come close to matching 2021, which was a record year for sales of existing homes here in Southern Nevada.
Buyers are profiting have home prices lower and more homes available for sale.
What we are seeing is a more balanced housing market today than we’ve had in years. The home real estate experts feel that this balance will continue this year.
Southern Nevada is seeing a nearly four-month supply of properties available for sale. That is a higher inventory than we have seen in at least a couple of years.
If you are thinking about buying a home keep an eye on mortgage rates. They will determine the local housing market for 2023. These factors work in cycles. Conditions will always change at some point.
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…..
We are here to answer any questions you might have – just email jennifer@smithteamlasvegas.com
Thanks and make it a terrific day…………The Smith King Team
