LAS VEGAS (KLAS) — Despite rising inflation and mortgage rates, the housing market in Las Vegas is still red hot.
But home buyer optimism is the lowest we’ve seen since 1978.
The Las Vegas housing market is very competitive, with sellers getting multiple offers and some buyers waiving contingencies — last month, nearly 60% of homes sold above their listing price.
We’re in a strong sellers market, but Kirby Scofield of Scofield Realty said that just in the past week, he’s seeing home inventory starting to normalize. He told 8 News Now why you shouldn’t be afraid to buy.
“We’ve seen an increase in listings, which is good, we’re at about a month of inventory,” he said.
What impact has rising inflation and mortgage rates had on the market? About a quarter of the buyers surveyed by Redfin are moving up their home buying plans, hoping to buy a home before inflation and mortgage rates increase even more.
Scofield said 30-year fixed mortgage rates in Nevada have hit an average of 5.37%.
Even sellers are being affected by inflation: many are choosing to sell sooner, hoping to cash out on their homes to help combat rising costs.
“You kind of getting the perfect market as a seller, you’re getting the sell side, you’re not losing value, but you’re also able to get buyer side benefits that are going,” Scofield continued.
He said that for first-time home buyers, if you find a house and it’s affordable for you, make an offer.
“It’s kind of like that wave, you’ve been waiting for that wave and you’ve been missing them, don’t be greedy and think ‘I’ll take the next one,’ because that house might be gone or the rates may go up too high, past your affordability range,” he said.
If your budget is tight now due to inflation, maybe lower the price range you’re looking at, because houses are still typically selling for thousands of dollars over asking price.