Home News Southern Nevada home prices soar but buyer activity slows

Southern Nevada home prices soar but buyer activity slows

by admin
0 comment

Las Vegas housing market Move at a dizzying pace For the past year or so — rapid sales, soaring prices, multiple home offers, and more.

But cheap money, the main fuel for frenzy here and elsewhere, has slipped through.

According to mortgage giant Freddie Mac, the average interest rate on 30-year mortgages as of Thursday was 5.1%, up from 2.98% a year ago.

Home prices in southern Nevada and across the country are still skyrocketing from last year’s levels, but buyer activity is declining as borrowing costs rise.

“The combination of a sharp rise in home prices and a surge in mortgage rates over 40 years is finally impacting purchase demand,” Freddie Mac chief economist Sam Carter said in a news release. Year. “

The Las Vegas housing boom should end someday, but no one knows when and how it will happen. In addition, the real estate market is prone to ups and downs, especially in southern Nevada.

As it stands, Las Vegas’s rapidly rising prices are still rising faster than other cities in the United States, availability remains tight, and affordable concerns remain unresolved.

However, there are some signs that some people are withdrawing again.

In terms of resale, the Las Vegas real estate agent, an industry group, reported that about 3,270 single-family homes previously owned in March were down about 12% from the same month last year.

In terms of new construction, Las Vegas-based HomeBuilders Research recorded net sales of approximately 1,260 (new purchase contracts minus cancellations) in March by builders in southern Nevada.

But overall, the company reported net sales of nearly 3,900 by March this year, down 15% from the same three-month growth in 2021.

We also noted that new home buyer traffic was down 18% compared to such traffic a year ago.

On top of that, the issue of the comprehensive natural resources of water, a large desert city hit by an ever-expanding drought, was revisited this week.

Workers at the Southern Nevada Water Department took action on Wednesday, Low lake level pumping station It’s fully functional on Lake Mead.

The move took place after the country’s largest artificial reservoir fell to a distance sufficient to expose the top of the highest level intake straws for the first time in history, reports Colton Rockhead, a staff writer for the review journal.

Still, the Las Vegas housing market continues to put it on the floor in some respects.

Resale prices are higher than ever, according to Las Vegas realtors. The average selling price of previously owned single-family homes reached a record $ 460,000 in March, up 26.7% year-on-year.

New home prices are higher than ever. Median closing prices for new single-family homes reached a record high of $ 483,000 in March, up 17.8% year-on-year, HomeBuilders Research reported.

Rent is also skyrocketing. Typical rents in the Las Vegas region in March were $ 1,828, up 22.7% year-on-year, Zillow reported.

So when and how does all this end?

stay tuned.

Contact EliSegall [email protected] Or 702-383-0342.follow @eli_segall On Twitter.

You may also like