After a lengthy hot streak, the Las Vegas housing market is braking.
Sales decline, inventory available increases, more sellers Significantly reduce prices Mortgage rates are skyrocketing, pushing up buyers’ borrowing costs.
In southern Nevada, not all aspects of the market are down as buyers continue to pay record highs. One of the worst spots In the country for first-time homebuyers.
The Las Vegas housing market isn’t wondering about volatility — and these days, the industry isn’t even on the ground.
Not only are housing moving in multiple directions at once, but people are tackling the fears of high inflation and recession. In addition, the most pressing issue of natural resources in the growing desert metropolis, which has been hit by an ever-growing drought, continues to make headlines for all the wrong reasons.
Lake Mead, which supplies about 90% of the water in southern Nevada Record low.. Among other side effects, Victim of murder — Probably dumped from a boat decades ago — was discovered in early May after the water level dropped.
So does this all mean that the Las Vegas housing market is heading for a plunge? The simple answer is no.
There is no way to predict what will happen to the economy as a whole this year or how long home sales will continue to decline. The housing market is always prone to ups and downs and other changes. I don’t know how long the current trend will last.
However, buyers have recently withdrawn as the rise in mortgage rates after the pandemic wiped out the cheap money that fueled the unexpected housing boom in the United States.
On the construction side, builders recorded 767 net home sales (new purchases minus cancellations) in southern Nevada in May, according to Las Vegas-based HomeBuilders Research.
According to the company, May’s monthly sales were the lowest this year.
Nationally, the pace of home sales by builders in May increased by 10.7 percent from April, but fell by 5.9 percent from May last year, federal data show.
The National Association of Home Builders said it expects sales to fall this month following a recent Fed rate hike aimed at curbing inflation.
“Many buyers are out of the market due to soaring construction costs and rising mortgage rates,” Jerry Contour, chairman of the Builders’ Association, said in a news release.
In terms of resale, more than 2,900 single-family homes were traded in southern Nevada in May, down almost 9% from the same month last year. report..
The average selling price of such homes reached a record high of $ 482,000 in May, up 25.2% from the previous year, or $ 97,000.
In the United States, the resale pace in May has slowed for four consecutive months, Expected to keep slidingReported by the National Association of Real Estate Agents.
“The sharp drop in sales is the latest evidence that lower affordable housing prices are putting a brake on the housing market,” Nicole Basho, an economist at home listing site Zillow, said in a statement. Stated.
An important question for Las Vegas is where the values of the home go. Following the purchase turmoil of the past year or more, many will be wondering what their home will be worth in the next year or two.
Your guess is as good as mine.