It’s amazing how much a quarter can make in a volatile Las Vegas Housing Market.
Las Vegas was a hot seller’s market for many years. The gradual rise in mortgage rates from 3.5% to 5.5% gradually reduced a buyer’s ability to buy a home by more than $100,000.
The days when buyers had to pay more than the asking price have slowly been replaced by buyer’s accepting seller concessions. However, this power was at the expense of higher interest rates.
Month over month since May, when the single-family home median price peaked at $525,000 (per Las Vegas Realtors, www.lasvegasrealtor.com) there has been a decrease in median price over June and July down to $499,990. Single family homes median price is still up 17.64% year over year, but available homes are also up 33.81% year over year. Inventory hit its low in January of 2022 with 5,572 available homes on the market. According to the Economics 101 formula, an increase of supply and a slight decrease of demand will result in the market price dropping.
Now, a patient buyer can wait to buy the home of their dreams at the price they are willing and able to afford. Buyers who are qualified can now use their preapprovals to make a competitive offer. This will allow them to be in control of the home buying process. Although there is a slight increase to monthly overhead due to this leverage, remember that you will always be paying down your mortgage, regardless of whether you own or rent. The decision is yours to make: do you want to pay your mortgage or the ‘.
Daniel Herrera is Residential Bancorp’s Branch Operations Manager. He can be reached at 714.878.3112 or [email protected].
The post The Present Change of Direction in Housing Market was first published on Vegas Legal Magazine.