Las Vegas is coming into 2023 and seeing a housing market correction. Early last year, it was a seller’s market; buyers could make 20 home offers and not get one accepted, even when offering over the asking price.
The market changed in mid-2022 after the Fed increased interest rates substantially, and the lower-priced market was greatly affected. For the first time in quite a while, there was more inventory and less spending. However, we are seeing a strong market at the higher price points.
In the past couple of months, we have seen buyers slowly return to the market as interest rates began to trend down. It is encouraging because consumers drive the real estate market.
Buyers are returning to the Real Estate market, and they are starting to experience inventory shortages. As inventory continues to decline, prices will begin to rebound. As a result, we will continue to see interest rates decrease, though probably slowly. All these factors result in fewer buyers; however, they will put sellers in a good position to negotiate.
In the Luxury market and the ultra-luxury market, comparing the fall of 2022 to the same period in 2021, only two fewer homes between $3 and $5 million were sold. The slight decrease in sales has more to do with limited inventory last year than the buyer’s reluctance.
So far in 2023, the market has seen a solid increase in demand. More activity is on ultra-luxury listings than at any other price point. Since interest rates are stabilizing, other sections of the housing market are seeing interest from buyers, so a rebound is not out of the question.
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.
