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Las Vegas’ housing market cooling faster than others as sales fall

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In many ways, the Las Vegas housing market is in cold water.

Fewer people are buying homes, sellers are slashing prices, and vacancies are skyrocketing.

Southern Nevada isn’t just seeing its once-hot market cool off lately. It seems that the brakes are applied more strongly than

Taylor Marr, deputy chief economist at real estate brokerage Redfin, told me on Friday:

The Las Vegas market has by no means stopped as homes are still for sale. But overall, buyers are retreating as higher mortgage rates wipe out the cheap money that fueled America’s unexpected post-pandemic housing boom.

According to Redfin, just over 27% of pending sales in the Las Vegas area failed in June, the highest cancellation rate in the country. report Its home sales fell nationally at the highest rate since the outbreak of the pandemic.

Additionally, 20.3% of listings in Southern Nevada saw their prices drop in June. That’s his fourth-highest share in the US, and inventory jumped him 22.2% over the month, with listing site Zillow showing the biggest growth in the country. report.

of slow down Follow the most heated residential neighborhoods for a while in southern Nevada. Fueled by the lowest mortgage rates that people can stretch their budgets for, sales prices are hitting all-time highs virtually every month. The property is inundated with offersIn 2020, homes sold rapidly, with resale tally hitting a record high in 2021.

housing market all over the country There was also a shopping frenzy. Marr said southern Nevada’s price gains last year were not “dramatically higher” than many other locations.

Still, he noted the large influx of residents here from areas such as Southern California, and said rising interest rates are making people less willing to move, lowering prices for first-time buyers. .

The average 30-year mortgage rate was 5.52% in June, up from 2.98% in the same month last year, according to mortgage giant Freddie Mac.

Locally, about 2,670 previously owned single-family home buyers flocked in June, down 8% from May and about 25% from June 2021, industry group Las Vegas Realtors reported. doing.

The median selling price for June was $480,000, down 0.4% from May. 2 years or more.

In the construction industry, builders posted 713 net sales (new purchase contracts minus cancellations) in June, down almost 24% from the same month last year, according to data from Las Vegas-based Home Builders Research. Did.

Last month’s sales tally annual minimum The company reported that it had fallen for three months in a row.

Zillow senior economist Jeff Tucker said Las Vegas, like other regions, “has seen a significant reduction in competition among buyers as affordability has sidelined many home seekers. ‘ said.

Las Vegas “stands out” among the 50 largest metropolitan areas in the United States with the highest monthly and annual inventory growth, Tucker said. But in most other cases, the “biggest slowdown” appears to be in the country’s most expensive market, the one where prices jumped the most during the pandemic, he added.

This does not mean that sales and prices are destined to last for many months.

Mortgage rates, which are still well above last year’s levels, have come down recently, and all the price cuts are likely to generate more buying, but Redfin’s Marr said the cuts are likely to spur more buying. is a response to “weak levels of demand”.

So where does the Las Vegas market go from here?

You’ll know right away.

Contact Eli Segall [email protected] or 702-383-0342.follow @eli_segall on Twitter.

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