LAS VEGAS (KLAS) — Home buyers are starting the new year with good news as the Las Vegas Realtors Association reported that home prices are back to where they were a year ago.
8 News Now previously reported how in 2022 it was a sellers’ market across the valley. However, the market is now more “balanced” meaning prices are more affordable for those looking to buy.
The LVRA reported that the median price of an existing single-family home sold in Southern Nevada in December was $425,000. That is down 1.4% from November and matches the median price from December 2021.
That number was also down from the all-time record median price of $482,000 in May 2022.
“At the time the pickings were so slime and I’d have an offer on a house. But by the time it was reviewed, there were 30 other offers so I just felt like I wasn’t able to get what I wanted so my hope was that I could at least get this and it would be more of an investment property,” home buyer, Mia Browning said.
Browning just bought her home last year in North Las Vegas. At the time, she said it seemed like she and the rest of the valley were making high offers on homes as inventory was scarce. Now, home prices are dropping, and what once was considered a seller’s market is now more balanced.
Lee Barrett, the president of LVRA, stated that 2022 ended on a much different note than 2021, a record year for existing home sales in Southern Nevada.
“It’s actually what we call a balanced market, benefits the seller,” Barrett said. “In January of 2022, people were paying more for a house than it was on the market for anywhere between $10,000 to $50,000 and now the prices have dropped and owners are willing to make concessions. Buy down the interest rate, which puts you in a good position where you can own a home.”
For those homeowners who just purchased property, a little bit of panic has set in knowing that now they would not be able to sell their home and make a substantial profit or break even.
“I couldn’t sell my home now and buy something better, even if I am making more money because my interest rate is so much higher then the prices just keep dropping,” Browning said. “Prices coming down is great for people who are looking but not people who are going to be selling. No one wants to lose money on their investment.”
While home prices are decreasing, making it easier for potential home buyers, condominium and townhome prices are still up by about 2% from December 2021, with the median price at nearly $250,000.