This is your real estate market update for the Las Vegas area, and we have a lot to talk about. It’s the holiday season, and what better way to end the year than with an update on the real estate market? There are a couple of things we are noting as we close out the year.
1. Demand is still low. We had 1903 closings in the greater Las Vegas area last month. That’s on track with the height of the pandemic, when everything was closed, which should tell you everything you need to know about how slow the market is right now. Over the last eight months, under-contract units have gone down, new escrows added in the month have gone down, and closings have gone down. Finally, days on market has doubled. It’s gone from 22 days to 43 days. That’s still not too bad from a seller’s perspective, but it’s quite a change from where we were.
2. Inventory is decreasing. We expected some of that with the holidays coming around, but it feels a little colder this year than in past seasons. It seems frustration with flat home sales and fewer buyers has stopped some sellers from bringing their homes to the market.
“There are a couple of things we are noting as we close out the year.”
3. We’ll see unemployment and economic pain in 2023. After raising rates by half a point, Chairman Powell of the Federal Reserve said we could be in for a rocky road in the coming year, basically admitting that the Fed’s moves to combat inflation may cause a recession. When it begins, how severe it will be, and how long it will last are all still up in the air.
4. Prices are decreasing. The median price of a single-family home went from $445,000 in October to $435,500 in November, a decrease of between 2% and 3%. That’s a sizable decrease, and all signs point to continued declines over the next few months.
What does this mean for you? The first thing is, definitely don’t ignore new homes. There are some unique opportunities in this space for you to take advantage of, as builders are giving away the farm. The second thing is, make sure your mindset is right for this kind of environment. Be telling yourself a winning story. If you have any questions about where you could be finding success in this real estate climate, don’t hesitate to reach out to me. I’d be happy to help you.
