Las Vegas housing market: Everything you need to know
Despite a recent cooldown, the Las Vegas housing market remains fairly competitive as out-of-towners continue to relocate to this famous desert city. Whether you’re a current resident or hope to be one soon, it’s helpful to understand the local housing market before buying or selling a home in Las Vegas. Here’s what you should know about the current state of the market, including recent trends and predictions.
Las Vegas housing market overview
It’s no wonder the housing competition can be fierce here: Thanks to its sunny climate, world-renowned entertainment scene and Nevada’s lack of individual income tax, Sin City’s population is growing fast. In fact, by 2060, Clark County (of which Vegas is the county seat) is expected to add more than a million new residents, bringing its total population to nearly 3.4 million, according to the Center for Business and Economic Research at the University of Nevada, Las Vegas.
After climbing steadily for years, Las Vegas housing prices peaked in mid-2022, when staggeringly high mortgage rates prompted a pricing drop across the country. But despite this decline, the median sale price of an existing home in Vegas still sits slightly above the national average.
Las Vegas housing market trends and stats
If buying a house in Las Vegas is in your future plans, you might be pleased to learn that prices have been falling for months. According to Redfin data, the median sale price for a Las Vegas home was $375,000 in December 2022, down considerably from the all-time-high of $432,000 in June 2022.
The sale-to-list ratio in Las Vegas was 97 percent in December, meaning that a typical home sold for 3 percent below list price. And more than 23 percent of homes had a price drop, a 9.4 percent increase over December of 2021.
Homes spent a median of 69 days on the market before selling in December — a huge 40 percent increase over the year before.
December saw 1,534 single-family homes sold in Sin City, according to data from Las Vegas Realtors. While that’s up 0.9 percent from the month before, it’s down a massive 51.7 percent year-over-year.
Typical closing costs in Nevada come to about $6,383, according to data from ClosingCorp.
Should you buy or sell in the Las Vegas housing market?
Coming off such a wild year in real estate, is it a good time to buy or sell your home in Las Vegas? Let’s explore the state of the market for both buyers and sellers.
If you’re a home seller
From a seller’s perspective, the housing market in Las Vegas has taken a tough turn in the last several months. Not only have home prices been falling, but the number of homes sold has also been dropping. Plus, properties are staying on the market for far longer than they were in the spring of last year.
With all of this in mind, you might be tempted to list your house now, before prices and sales slump even further — and that could certainly make sense. Redfin data suggests that home prices in Las Vegas are down 1.3 percent from this time last year, but some expert predictions see nationwide prices falling around 7 or 8 percent.
If you decide to sell, make sure you’re realistic about how much your home is really worth before setting a price. Many buyers won’t be able to spend as much on a home right now, since mortgage rates remain high. If you’re on a tight timeline or need the cash quick, consider selling to an iBuyer — Offerpad and Opendoor both operate in the Vegas area.
If you’re a homebuyer
If you’re interested in buying a house in Las Vegas, waiting until mortgage rates decrease could be a good choice. However, this strategy could be risky, since rates aren’t guaranteed to fall. In fact, while some economists believe that mortgage rates are likely to decline this year, others aren’t so optimistic, predicting that rates could cross the 8-percent mark in 2023.
For those who don’t have time to wait, there are some benefits to purchasing right now. Because of the high mortgage rates, fewer buyers are entering the market, so you could face less competition. And since Las Vegas home prices have been dropping steadily, you could snag a good deal by buying now.
Regardless of when you buy, it’s essential to understand how much house you can afford. Getting preapproved for a mortgage is a great starting point to help you determine what’s within reach, based on your financial situation. If you’re moving from another city or state, it’s also important to understand the cost of living in Las Vegas and how it compares to your current situation.
Las Vegas housing market predictions
Last year was a rocky one for real estate, which has led many people to question whether a housing crash is on the horizon. Experts say a crash is unlikely, but the market’s gradual decline may well continue into 2023. For example, the National Association of Realtors anticipates that U.S. home sales will decline by 6.8 percent this year, while prices will remain nearly flat.
Appropriately enough, Vegas may have better luck than the country overall. According to Knock, an online house-buying company, Las Vegas will have the country’s third-hottest buyers’ market in 2023.
Find a Las Vegas real estate agent
The housing market here is complex and constantly changing — which is one of many reasons why hiring a real estate agent to guide you through it is a smart move. Whether you’re a buyer or seller, working with an experienced local agent will give you insight into the Las Vegas market and help you navigate the buying or selling process with confidence.
According to Redfin data, Las Vegas housing prices have been trending down since June 2022, when the median sale price was $432,000. As of December 2022, the median sale price in the city was $375,000.
While home prices are decreasing in Las Vegas, mortgage rates are still on the high side. If you buy right now, you won’t be able to get as much home for your money as you would if you waited for mortgage rates to go down. On the other hand, if you see something you love at a price you don’t want to miss out on, remember that you can always refinance your mortgage later if rates drop.