LAS VEGAS (KLAS) — Right now, the Las Vegas housing market is cooling.
So, what are the expectations for southern Nevada this fall?
Kyle Wallace is the COO of Driggs Title Agency, which covers Las Vegas and parts of Arizona. He said that right now, sellers in southern Nevada are dropping their prices, and people are buying fewer homes.
“With it slowing down a little bit, we’ll start to return to normalization,” he said. “We’re going to go through a period of sellers being a little disappointed if they hadn’t listed their property four or five months back.”
The unusual last year and a half had sales prices hitting new all-time highs across Las Vegas, buyers flooded with offers, and homes selling rapidly.
We saw less than 3,000 single-family residences available on any given day. But just this week, the availability of homes has almost tripled, as our current inventory has now exceeded 8,000.
More inventory means more prices are softening.
The Federal Reserve boosted interest rates four times since March, homebuyers have to cope with steeper monthly payments, and sellers are experiencing less demand for their homes.
27% of pending sales in the Las Vegas area fell through in June.
“As interest rates have gone up and people have seen that change in their payments, a lot of people buy homes based on payments they have, rather than the value of the home, and they’ve been more likely to cancel,” Wallace continued.
The sharp rise in rates has cooled the housing market and caused the economy to start slowing, but it hasn’t done much to lower inflation. Looking ahead, Wallace said to keep it all in perspective.
“By late fall, we’ve become accustomed to the interest rate, and people are going to be jumping back into the market, and if you think back, five, ten years ago, 5 to 6% interest rates,” he said. “Where we’re at right now, that was a great interest rate, we’re so used to being in the two’s that there is some sticker shock.”
Wallace said cash is still king when buying a home, because you don’t have to worry about any hiccups with a loan and you also appeal to the seller by waiving the appraisal contingency.
As for the rates, experts don’t expect the Feds to make any adjustments until 2024.