The Las Vegas Valley has notably emerged as the leading U.S. market in terms of year-over-year growth in new home listings, according to a recent study by Realtor.com.
In June, active listings surged by an astonishing 77.6 percent compared to the previous year, outperforming all 50 largest metropolitan regions analyzed by the site.
Jake Krimmel, a senior economist at Realtor.com, pointed out that while the steep rise in listings is remarkable, it is only part of a more complex market dynamic affecting the region.
‘This is more than double the national growth rate of 28.9 percent,’ Krimmel stated, highlighting how the Las Vegas increase nearly doubles the growth seen across the Western U.S. overall.
In addition to expanding listings, homes in the Las Vegas Valley are now sitting on the market for an average of 11 days longer than the national average of five days, indicating a shift toward a more buyer-friendly market.
Despite the influx of new inventory, home prices have climbed back up to a record high of $485,000.
This rise in prices seems paradoxical, especially given the current high mortgage rates, which have deterred many potential buyers and kept existing sellers clinging to lower interest rates obtained during the pandemic.
The ongoing scarcity of new home construction exacerbates the issue; the concentration of federally controlled land in the valley inhibits new development, contributing to sustained high prices alongside a growing population and flourishing luxury real estate sector.
Krimmel asserted, ‘Buyers have more options to choose from, more time to make their choices, and fewer buyers to compete with — and sellers are cutting prices as a result.’
He revealed that approximately 27 percent of listings have seen price cuts, a figure that exceeds the national average by about six percentage points, further indicating a softening market.
However, Krimmel expressed curiosity about the disconnect between rising inventory and relatively stagnant prices.
Traditionally, a significant increase in home listings would lead to a decrease in prices, but that correlation is not evident in the current Las Vegas market.
He noted that list prices have only dropped by 1 percent year over year and by 0.4 percent on a square footage adjusted basis, aligning closely with national averages.
Some cities, such as Austin and Miami, have already experienced more significant year-over-year price drops of 5 to 6 percent, raising questions about whether the Las Vegas Valley will follow suit.
Krimmel emphasized that the Las Vegas market has not undergone the same construction boom seen in Texas and Florida, possibly influencing the divergence in price trends.
As the market evolves, he suggested it will be critical to monitor how sellers and buyers respond to the increasing inventory, which now sits 36 percent above pre-pandemic levels.
In contrast, national inventory remains about 13 percent below pre-pandemic norms.
‘Will motivated sellers drop prices? Or will they wait out the market — or pull the listing — rather than negotiate?’ Krimmel pondered, indicating that the answers to these questions will shape the future landscape of the Las Vegas real estate market.
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