If you’ve been browsing the Las Vegas real estate market lately, you might have noticed something peculiar: a lot of homes just aren’t moving. In fact, almost 60 percent of homes for sale in the Las Vegas Valley have been sitting on the market for more than a month! What’s going on?
The Stagnant Scene
According to recent reports from local realtors, the Las Vegas housing market can be described as “stagnant.” Real estate agents in the valley attributes this to a disconnect between home sellers and buyers.
There are more listings hitting the market, but many aren’t in good condition or located in desirable neighborhoods. Sellers are pricing unrealistically high. A lot of sellers are willing to let their home sit on the market until they get the price they want, and a lot of buyers aren’t willing to pay sky-high prices when mortgage rates are still high, according to the consensus of many local realtors.
The Numbers Game
As of the end of June, 59.4 percent of homes for sale in Las Vegas had been on the market for over a month, a slight 1.1 percent decrease from the same time last year. Interestingly, while Las Vegas is seeing homes linger, the national trend is even more pronounced. Around two-thirds of homes for sale in the U.S. have been on the market for more than a month, marking a 60 percent increase from June last year.
Where the Action Is
Despite the overall sluggish market, there’s still activity in certain segments. More affordable homes in popular neighborhoods and fairly priced luxury homes are attracting multiple offers and selling quickly. Las Vegas also boasts the largest year-over-year increase in new listings among major metros at 17.5 percent, narrowly edging out San Jose.
Piling Up Inventory
Redfin’s report indicates that homes are continuing to pile up on the market. June marked the fourth consecutive month where the percentage of homes sitting for at least one month increased year-over-year. These less-desirable listings contribute to the growing unsold inventory.
Price Points and Sales
The median sale price for a single-family home in the valley is currently $450,000, a 7.2 percent increase from last year. However, only 875 homes have been sold as of June, a 14.5 percent drop from the same period last year. In fact, last year was the worst for real estate sales in the Las Vegas Valley since 2008, according to MLS statistics.
How Long Are Homes Sitting?
The median number of days a home typically sits on the market in the valley is 37 days, a slight 3 percent drop year-over-year. Interestingly, more than a quarter (27 percent) of homes sold in the valley are selling above their initial listing price, a 2.4 percent increase from last year. Meanwhile, 24.9 percent of homes have dropped their prices, a 2.3 percent increase from June 2023. The average home in the valley sells for about 1 percent below its initial list price.
What Does This Mean for You?
If you’re a buyer, this might be the perfect time to negotiate and snag a deal, especially with so many homes sitting on the market. Sellers, on the other hand, might need to adjust their expectations or improve their home’s condition to attract more interest. Either way, understanding these trends can help you make more informed decisions in the Las Vegas real estate market.
And with the recent drop in mortgage interest rates, and the anticipation of a Federal Reserve rate cut coming in September, buyers who have been sitting on the sidelines are going to furiously flood into the market creating a furious buying frenzy in the coming months. With that being considered, if you’re interested in buying a new home, now is the time to get into the market to make your purchase. Timing is everything, and now is the time to purchase your ideal home before the frenzy begins and brings with it even higher home prices and bidding wars for homes among buyers. The door is now open for a sane buying experience for savvy home buyers, but it will likely close quickly. So, get in now before the next frenzy of real estate insanity hits!
Stay tuned for more updates and happy house hunting! 🏠✨
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