If you have been waiting to buy a home expecting rates to go down or, better yet, the housing market crash, chances are, you’re still waiting. Potential homebuyers are always too aloof on the status of the rate market or how much home values are going up and down, when in fact, they should be looking at their budget and how much home they can afford monthly. One thing is certain, you can never go back in time and buy a home when you thought the market was at its best. Many people wondered if rates would dip below 3.00% and waited. Many people wondered if homes were priced too aggressively and waited. In the end, the cost of waiting will generally cost you more money in the long run.
The Las Vegas market continues to demonstrate an unpredictable forecast that changes weekly. As of March 2025, the Las Vegas real estate market exhibits signs of both growth and challenges. Single-family residential (SFR) inventory has increased by approximately 12.5% over the past 30 days, rising from 4,800 to 5,400 units. Despite this rise in inventory, the number of units sold has decreased by about 3.4%, from 1,900 to 1,800, resulting in approximately 4.1 months of inventory which is a measurable uptick from previous months. Median home prices in the Las Vegas area have seen a year-over-year increase of 6.9%, reaching $449,000 last month. The market is described as somewhat competitive, with homes typically receiving multiple offers and remaining on the market for an average of 54 days.
However, the market dynamics vary across different communities within the Las Vegas metro area. For instance, luxury properties are experiencing significant activity, with high-end homes like a $25 million penthouse and a $15 million mountainside residence recently entering the market. Conversely, other areas face challenges, with months of inventory ranging from two to thirty-six, indicating disparities in market conditions across different neighborhoods. Overall, while there are positive indicators such as rising median prices and active luxury sales, the market also contends with increased inventory and varying demand across different regions. Prospective buyers and sellers should stay informed about these trends and consult with local real estate professionals in order to properly navigate the current market effectively.
Along with the current market on home pricing, consumers must stay on top of the mortgage rate market. Mortgage rates in the United States have recently experienced a notable decline. As of February 27, 2025, the average rate for a 30-year fixed mortgage decreased to 6.73%, marking the most significant one-week drop since November 2024. This decrease has led to a 37% surge in refinancing applications compared to the previous week and an 83% increase from the same week last year. However, the first week in March has already seen an uptick in rates due to the uncertainty we face with the current fiscal policy of President Donald Trump. The reduction in mortgage rates is largely attributed to economic uncertainties surrounding President Trump’s proposed import tariffs, which have contributed to a decline in Treasury yields. These lower borrowing costs have slightly boosted home-buying demand, with applications increasing by 9% from the prior week in February. March may bring more uncertainties as all financial forecasters are scrambling to gather information on short-term and long-term effects of the new fiscal policy on the mortgage industry.
Despite these previous positive trends in mortgage rates, the U.S. housing market remains divided. States like Texas, Florida, and Colorado are experiencing a surplus of homes due to increased building activity, leading to potential price decreases if mortgage rates stay high. Conversely, regions in the Northeast and Midwest, such as New Jersey and Pennsylvania, face significant housing shortages, keeping prices elevated. However, Las Vegas is currently experiencing a housing shortage. This scarcity has led to rising home prices, making ownership unattainable for many residents. The influx of residents from states like California has further intensified competition for available properties. Additionally, investors, including hedge funds, have acquired nearly 15% of all residential housing stock in Clark County, contributing to the limited availability for prospective homeowners. Although Las Vegas is experiencing significant growth in its new construction housing market, we are still facing a housing crisis characterized by rising rents and home prices.
In the end, if you are ready to buy, ALWAYS reach out to a Loan Officer FIRST. Have your 2x2x2’s ready; two recent paystubs, two years’ taxes and W2’s/1099’s and two months’ bank statements. Once you have been pre-qualified and settle on a comfortable mortgage payment, speak to your Real Estate Agent to start your shopping process.
Daniel Herrera is the Senior Loan Officer at Merit Lending. He can be reached at 714.878.3112 or [email protected]
The post Buying a Home in Today’s Economy – The Emotional Rollercoaster appeared first on Vegas Legal Magazine.