No one variable — including mortgage rate increases — will be the sole determining factor that shapes the future of Las Vegas real estate. What about the recent and alarming downward trend overtaking Wall Street and the stock market? Some investors may already be liquidating some of their stock positions and looking toward real estate for future returns. The remarkable increase in rental markets across the United States makes the real estate market attractive to those individuals. Inflation and soaring gasoline prices already have more than a few homeowners searching for a home closer to work and schools! Each individual buy-and-sell decision encompass factors unique to that transaction.
The question is if current price reductions simply the result of increased interest rates? Or does buyer and seller behavior have more to do with the resultant price drops? Perhaps both, however it’s not solely determined by mortgage interest rates. For example, if a seller is price cutting shortly after listing, it speaks more to their motivation. It makes sense that if a seller is already in a purchase agreement to buy (potentially trading up), then they need to protect that purchase contract, especially if they are not already in escrow with the home they are selling. They may have a contingency to sell their home that may expire soon.
That generates motivation to protect both transactions. Looming mortgage interest rate increases should create a sense of urgency to ensure the pricing is at the market.
Sellers still command the initial negotiating advantage while there is less than six weeks of available inventory. The Las Vegas real estate market intrigues us, in part because it’s never boring! Plus, this is where we live. Right now, the market enjoys continued strong demand, job creation and business diversification.
Market changes are far more complex and dynamic by nature. We are only about halfway through 2022, leaving plenty of time for market, economic, political and even social forces and values to shape the future of the 2022 Las Vegas real estate market. One or two data points do not constitute a trend.
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.
