Assessing the Road to a Balanced Las Vegas Real Estate Market

July Market Report

Welcome to the July Housing Market Report, where we take a serious look at the current state of the Las Vegas real estate market. The past three years have been a rollercoaster ride for agents, buyers, and sellers. From super-low mortgage rates to unexpected pandemic-related trends, it's been a wild journey. But let's put the excitement aside for a moment and focus on one pressing question: Are we getting closer to a balanced Las Vegas real estate market in 2023? Let's dig into the numbers.

Factor #1: Inventory

To have a balanced market, we need a perfect equilibrium between buyers and sellers. This happens when there's a 6-month housing supply. Sadly, we're not there yet. Presently, Las Vegas and the entire U.S. face a 1.6-month supply of existing homes for sale. This low inventory has kept us in a seller's market for some time.

The lack of new listings has only made things worse. The housing market has been parched for fresh listings for nearly a year. The situation is dire, with significant increases in new listings activity are unlikely in the near future.

On a more optimistic note, new construction has shown some improvement. National housing starts in May were up by nearly 6% compared to the previous year. This offers a glimmer of hope, as it can help ease the burden on agents during the slower summer season.

Factor #2: Mortgage Rates

Ah, the ever-changing mortgage rates – a crucial factor in the real estate world. In the past, we enjoyed those dreamy sub-3% rates. But those days are gone. Currently, more than 60% of homeowners with a mortgage have rates below 4%. They are in no hurry to let go of those favorable terms.

While we can't turn back time, a stable mortgage rate under 6% might attract more buyers and sellers. However, we face a challenge, as mortgage rates have started rising again due to a robust job market and steady wage growth.

Although we may not see those record-breaking rates return anytime soon, if inflation stabilizes, it could pave the way toward a more balanced Las Vegas real estate market.

Wrapping It Up

As we conclude the July Housing Market Report, we find ourselves cautiously optimistic. While we haven't yet reached the perfect balance of a stable market, there are reasons to remain hopeful.

New construction offers a potential solution to the inventory crunch, while stability in mortgage rates might entice more participants into the market. As we navigate the ups and downs, let's keep a watchful eye on these factors and see how the Las Vegas real estate market evolves.

In the end, success in real estate isn't just about excitement; it's about making informed decisions. The path to a balanced market might not be as thrilling as a rollercoaster ride, but it's what allows agents, buyers, and sellers to find a stable ground in an ever-changing industry.

Stay focused, stay informed, and let's see where the Las Vegas real estate market takes us in the coming months. Happy house hunting! 🏠