High mortgage interest rates have sparked a slow down in the Las Vegas Real Estate market. However, low inventory continues to push prices higher albeit at a slower pace than last year.
Read or watch our video below for the full June 2022 Las Vegas Real Estate Market Update. This month we’ll be discussing monthly market changes and rising 2022 interest rates. All data from LVR May 2022.
Median Home Prices
The median sales price of single family homes increased 1.5% from the previous month to $482,000. This is up 25.2% from the previous year. Low inventory is still putting upward pressure on sales prices, despite decreasing demand. Although we’re still seeing price increases, the major monthly 5-6% swings we saw in 2021 are over. Overall, the market is slowing down and stabilizing to some degree.
The median sales price of condos and townhomes saw a month-over-month increase of 3.6% to $285,000. This is up an incredible 39% from the previous year. Condos and townhomes have seen more appreciation than single-family homes lately as buyers who’ve been pushed out of the single-family home market look to purchase affordable housing.
High interest rates and inflation have begun to impact buyers. We are seeing a direct result of this in the number of units sold (2,907), which is down 3.1% from the previous month and down 8.8% from last year. We expect this trend to continue as interest rates continue to slowly climb.
Interestingly, condo and townhome sales, which ended the month at 851, are up 9.7% from the previous month but still down 6.6% from last year.
It’s important to note that this slowing is good for the economy. The frenzy of 2020-2021 was unsustainable. Fewer homes bought should mean slower appreciation and also less furniture, appliances, etc.
Inventory of single family homes jumped up 46.3% to 3,570 homes available for sale. This increase sounds drastic. But we went from almost no inventory to very little inventory. There are 1.2 months of inventory for single-family homes, which still heavily favors the seller.
Along those same lines, there were just 797 condos and townhomes available for sale, up 56.9% from the previous month and up 50.7% from the same time last year. Again, this sounds like a drastic incease, but there are still only 0.9 months of inventory.
A balanced market that neither favors the buyer nor the seller balances out at around 6 months of inventory. We are still in a heavy seller’s market as inventory remains very low.
While the market is slowing down, nice homes in desireable areas continue to receive multiple offers. Homes that are overpriced or have other challenges are no longer the easy sale they were just a few months ago.
We recommend that you use this real estate market update as a guide since real estate is local to your area. This means that you may have a sellers’ market or a buyers’ market depending on the region or local area you are looking to buy/sell.
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All data is May 2022 numbers, supplied by the Las Vegas Realtors. Deemed reliable but not guaranteed.