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Las Vegas housing market slows after heated run

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No matter how you look at it, the Las Vegas housing market accelerated rapidly a year ago.

today? Binge shopping is becoming a distant memory on a weekly basis.

The Southern Nevada housing market is putting the brakes on everything. People are buying fewer homes, sellers are slashing prices, vacancies are skyrocketing, and building permits are being obtained by home builders.

The US housing market late lately Because buyers face higher borrowing costs. But at least in Las Vegas, the market looks dramatically different than it did just a few months ago.

Of course, there’s no telling where housing will head in the next few months. Also, just because you’re slowing down right now doesn’t automatically mean you’re headed for facial plants.

But buyers are pulling back and change is being felt quickly.

‘Really rapid progress’

Simply Vegas agent Jillian Batchelor told me a few weeks ago that the market was overheating earlier this year, but started to change as mortgage rates rose.

Buyer demand is sluggish, and househunters are making offers below list prices and seeking concessions, Batchelor said.

That’s a stark contrast to last year, when low mortgage rates fueled a buying frenzy, with sellers routinely flooded with offers and buyers. Pay more than asking price.

Overall, it was a “very quick turn of events,” Bachelor said.

Headlines for the housing market have been pretty bleak lately, with regular reports from trade associations detailing the slowdown.

“Homebuyers are increasingly withdrawing deals as a market slowdown increases bargaining power,” brokerage Redfin declared Aug. 16, following an Aug. 12 announcement. Heading 9 reads, “Redfin reports growing share of home listings as market cools.”

Redfin in June dismissal With about 470 employees, CEO Glenn Kelman warns that “home sales could decline in years, not months.”

Decrease in sales, increase in inventory

Low borrowing costs and an influx of out-of-state buyers working from home are boosting the Las Vegas housing market. accelerated to the most frenetic pace in years 2021 years.

Prices hit all-time highs virtually every month, buyers flooded properties with offers, the house sold quicklyIn the rush to buy, builders put buyers on waiting lists, regularly raising prices and, in some cases, soliciting names to decide who could buy the site.

The market looks very different today.

Southern Nevada resale prices fell monthly in July. twice in a row After not dropping for over 2 years. Last month, the median selling price for a single-family home was $465,000, down $15,000 from June, according to industry group Las Vegas Realtors.

According to the association, 2,066 single-family homes were purchased by buyers in July, down 38.4% from the same month last year, while 7,331 homes remained unsold by the end of July, up 143.8% year-on-year.

Above construction Meanwhile, builders posted net sales of 434 (newly signed purchase contracts minus cancellations) in July, according to data from Las Vegas-based Home Builders Research.

All this in the midst of a steep rise in mortgage rates. Mortgage buyer Freddie Mac said his average 30-year mortgage rate was 5.41% last month, up from his 2.87% in July 2021.

The Las Vegas homebuying frenzy was bound to end at some point because the market can only get its foot on gas for a very long time. did.

And lately, we seem to be discovering.

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

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