Las Vegas Housing Market Outlook 2023
But, the selling-friendly housing trends have become more of a buyers' market by 2023, with price increases and home sales showing indications of declining at the beginning of the year.
Las Vegas Housing Market Trends
It's not a secret that the Las Vegas real estate market is in a state of rebalancing. For example, a September 20, 2022, Redfin report of the nation's 100 largest U.S. metropolitan areas declared that Las Vegas is the second-fastest cooling market. Seattle came in first.
The city has also been named among the top 10 well-known destinations to move to. Although selling homes within this metropolitan area is getting more challenging, there is evidence that people are eager to move towards Las Vegas.
Home Prices Are Dipping
The good news for buyers is that the median price of homes is declining. The Las Vegas Realtors(r) (LVR) states that the median price of a single-family house was $495,00 in May 2023. This was lower by 5.71 percent from the same month the previous year.
The data from Redfin suggests that 23.3 percent of the listings experienced an increase in price between May and 2023. That's a 1.6 percentage decrease over the year. This suggests sellers are likelier to accept lower prices in a highly competitive market.
Alongside lower costs and fewer sales, fewer homes are being sold at or above the price they were listed for. Redfin states that 26.5 percent of homes listed above their prices in May 2023. This is an increase of 32.7 percent decrease year-over-year, which indicates a more even market. The highest level was 58.7 percentage at the end of April 2022.
Fewer Homes Are Available
However, for those who are looking to buy that are looking to buy, there needs to be more supply of homes that are single-family located in Las Vegas. The number of single-family homes available in May 2023 was above 6,500. That's less than 3.28 per cent in comparison to the same time last year. But, the high-demand summer and spring selling seasons will likely bring more homes on the market and buyers fierce competition to this Las Vegas housing market.
Las Vegas Home Price Index
Prices for homes in Las Vegas have softened considerably this year, in line with the national forecasts of less expensive homes and lower sales. This is because of increased mortgage rates and the need for low-cost single-family houses.
Based on the S&P/Case-Shiller, the NV Las Vegas Home Price Index, the index's value was 270.45 on April 20, 2023. That's down 6.78 per cent from the same month a year earlier and significantly smaller than the peak of July 2022, which was 300.05.
A home purchase located in Las Vegas is currently more accessible than many other areas in the U.S. but still well higher than the city's record-setting high of 234.78 in August.
Median Days on Market
Active listings within the Las Vegas-Henderson-Paradise metropolitan statistical area remain on the market longer, although homes historically take longer to sell during the fall and winter seasons.
The median market days for May was 46 days, double the post-pandemic low, 23 days during April and May 2022.
For a longer-term perspective, as a comparison over time, the pre-pandemic median between 2016 and 2019 was just 49 days long, which suggests that the market is back to the norm of its past.
Las Vegas Housing Market Forecast
Like most local actual property markets, Las Vegas is shifting from being a buyer's market to one that can be pleasing to buyers and sellers.
Home Prices Are Likely To Keep Declining
Recent trends indicate that home prices are expected to continue falling from the record-setting median price of $499,900 back in May 2022, as buyers are more discerning because the mortgage rate remains near its 20-year peak as inflation continues to affect consumers' budgets.
They don't, and these Las Vegas market predictions need to provide a definitive estimate of how low they'll be in the coming twelve months and whether they'll ever return to prices before the pandemic, which was $320,000.
Currently, the home price is settling down, and a significant market downturn is not likely due to the local economy and interest from immigrants from out of state who are interested in settling within Southern Nevada.
Homes Will Take Longer To Sell
Las Vegas sellers will see their properties remain in the marketplace for longer and could have to bargain for a higher price in the coming year.
In addition, buyers might not be as eager to submit an offer when the MLS listing is active. Furthermore, research suggests that sellers' price reduction has become more frequent after median listings peaked during the summer of 2022.
With today's mortgage rates at 7.12 per cent for a 30-year fixed-rate mortgage, there is a decrease in demand for homebuyers. The lower competition for buyers suggests buyers should wait longer to get a deal.
Is It a Good Time To Buy a House In Las Vegas?
As home prices are soaring and rising, this could be an ideal opportunity to invest in a property within Las Vegas and Southern Nevada. But, it could be a limited selection of homes to pick from with fewer options that you can choose from than in prior years.
As prices for listings began rapidly rising in February 2021, the market's momentum is now overwhelmingly favorable to sellers. However, houses remain high-priced for buyers and are facing rising borrowing costs. With the current economic climate, buyers can negotiate concessions from sellers and make an initial lower offer.
It's difficult to determine the extent to which mortgage rates could be and if rate increases can offset possible home prices falling. You can buy a home now when you locate a reasonably priced house that meets your requirements and your budget.
In addition, first-time homebuyers might also be eligible for specific programs that help make homes less expensive.
Is It a Good Time To Sell a House In Las Vegas?
Owners considering selling their homes may not be as strong in the same way as after the pandemic. Although home prices have declined since last summer, they're not far from record levels and a large portion of those who bought their homes before the outbreak will likely have equity in their homes.
Amid a slowing housing market, there is a rise in seller competition. If you plan to sell your house in 2023, ensure your home is competitively priced and distinct from similar listings. Think about sprucing the landscape with new paint, making minor repairs, and any other improvements that will give your house the edge regarding online home searches. These steps will aid in attracting more potential buyers as well as compete with similar houses in the marketplace.
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