What’s Happening in Our Real Estate Market?
Here’s what you need to know about Las Vegas’s spring market.
What happened in March in the Las Vegas housing market? Did prices finally crash, or are things just as strong as ever? Let’s take a look at the numbers and find out.
In March 2022, closed sales were down in Las Vegas by 12% year over year. Despite this, the median single-family home value still increased from $450,000 to $460,000 year over year. Meanwhile, the median townhome value increased from $260,000 to $270,000.
So what’s going on? How are prices still rising even as sales fall? The big elephant in the room is our increasing interest rates. Before, the Federal Reserve hinted they would raise interest rates to somewhere in the high threes. Now, rates are already above that, and it looks like they may increase further.
Even though sales are falling, prices continue to increase.
The main reason the Fed is raising interest rates is to combat increasing inflation. I’m sure we’ve all felt it at the pump and the grocery store; things are getting more expensive. If you’ve never bought a home with a mortgage before, you may not think a 1% increase in interest rates is so bad, but in reality, a 1% increase lowers your buying power by 11%. If you are looking to buy a home, I recommend you move sooner rather than later so you can take advantage of our lower rates.
Inventory is incredibly low, so it can be difficult for buyers to find a home. If you are struggling to find something, reach out; I have a list of off-market properties I’d love to share with you. Meanwhile, now is the time to sell. Buyers are desperate to purchase a home before rates increase, so you could get a fantastic deal. My team even offers a program to help you make some basic repairs and upgrades before you sell. Just reach out to me if you’re interested.
If you have questions about what’s going on with the market or anything else, please call or email me. I look forward to hearing from you.