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Contradictions were the order of the day in 2023 for the Las Vegas housing market. According to Las Vegas Realtors’ new report, price tags have grown, but sales have significantly slumped. The Las Vegas real estate market has witnessed its slowest year since the financial crash of 2008, with an 18 percent dip in sales from the previous year.
The figures exhibit a baffling paradox of an increase in sale prices amid a profound decline in sales. In December 2023, the median price for a single-family unit escalated around 6% from $425,000 in the same month prior year to $449,900. However, these prices still lag behind the all-time peak of $482,000 in May 2022.
Las Vegas Realtors President, Merri Perry, identifies the limited housing supply as the major driver behind the decline in sales. Perry, who ascended to the presidency following Lee Barrett, remains optimistic about a resurgence in the Las Vegas real estate scenario in 2024.
“A ratcheting down of interest rates towards the year’s end can catalyze home affordability,” Perry noted. “A nationwide forecast predicts an uptick in the housing supplies in 2024, which is likely to stimulate the buyer-market and advance further home sales.”
In the south of Nevada, sales of existing homes, condos, and townhomes plummeted to 29,069 in 2023, an 18% decrease from the 35,584 units sold in 2022. This decline is even more striking considering the record year that 2021 proved to be for home sales, with a whopping 50,010 units sold.
New home listings suffered a similar fate, with a 10.3% decrease from the previous month, and a jaw-dropping 30% year-over-year decline. Conversely, the housing prices continued to surge, with a 1.3% increase in December from the preceding month, and a robust 19.5% rise from December 2022.
Real estate experts point the finger at ‘sticker shock’ for the sales downturn, attributing it to steep mortgage interest rates. The silver lining in the current situation is that these rates are expected to descend gradually in the forthcoming year. Interestingly, this anticipated decrease in rates could stimulate a rise in home purchases, especially considering that home values appear to remain steady. Homebuyers might view this as an opportune time to seal deals, especially with prices forecasted to soar in the future.
The path of the Las Vegas housing market in 2023 has been an intriguing mix of contradictions and complexities, marked by simultaneous advancement in prices and recession in sales figures. Despite this, industry insiders maintain a positive outlook for 2024.
As evidenced by the words of Perry, measures such as a decrease in interest rates coupled with an increase in housing supplies can generate a favorable momentum in the Vegas market. With such anticipated trends, it might be the opportune moment for potential homebuyers to place their bets on a Las Vegas haven.
Published by: Aly Cinco
