Headlines for the housing market look pretty bleak these days.
Industry groups report a “plunging” national sales, less competition among buyers and the highest rate of sales cancellations in the U.S. since the outbreak of the pandemic.
‘Builder confidence plummets as affordability issues rise,’ says National Association of Home Builders Declared last month.
This is all because, following a year of significant price increases in southern Nevada and across the country, rising interest rates have made it even more expensive to buy a home. .
The average interest rate on a 30-year mortgage was 4.99% on Thursday, down from 5.3% the week before, reported mortgage buyer Freddie Mac.
It’s the first time since April that interest rates have fallen below 5%, albeit barely.
Of course, interest rates are still higher than last year’s lows, and this week’s drop means the mortgage market is looking to reverse that and make super-cheap money available to homebuyers again. not.
But home sales are slumping Las Vegas and America If borrowing costs continue to fall, more buying activity is likely.
For now, sellers shouldn’t get too excited.Freddie Mac Chief Economist Sam Cater Said A news release this week said interest rates were likely to “remain volatile” due to the uncertainty surrounding inflation and other factors.
In Southern Nevada, the housing market hasn’t come to a halt amid rising interest rates this year, but it’s slowing.
On the resale front, buyers acquired about 2,670 single-family homes in June, down 8% from May and about 25% from June 2021, industry group Las Vegas Realtors reported.
The median selling price for June was $480,000, down 0.4% from May.
More than 27% of pending sales in the Las Vegas area fell in June, the highest cancellation rate in the nation, according to real estate broker Redfin.
Additionally, about 20% of listings in Southern Nevada saw price drops in June, the fourth-highest share in the United States, listings site Zillow reports.
On the construction side, builders in Southern Nevada posted 713 net sales (new purchase contracts minus cancellations) in June, compared to last year’s same, according to data from Las Vegas-based Home Builders Research. It has decreased by almost 24% from the month.
Sales figures for June are annual minimum The company reported that it had fallen for three months in a row.
The southern Nevada housing market has reached its most frenetic pace in years in 2021, aided by record-low mortgage rates that allow buyers to stretch their budgets. Sales prices hit all-time highs virtually every month, buyers flooded homes with offers, and homebuilders pitched buyers. We decided who could buy a place by going on a waiting list or drawing their name in some cases.
No one knows what the market will look like in the coming months. Remember, it wasn’t long before people embarked on a long-running home-buying binge after the coronavirus outbreak devastated the economy and turned our lives upside down.
who expected that?