The real estate market in Las Vegas Valley is experiencing a notable shift as home sellers are increasingly reducing prices, yet buyers remain hesitant, according to a Zillow report. In February, 18.5% of listings saw price cuts, marking a 12.8% rise from the previous year. Despite these adjustments, the average home price in the region stands at $430,277, registering a 4.2% annual increase and a significant 45.6% rise since pre-pandemic times.
Sales activity has softened, with 2,296 homes, condos, and townhomes sold in February, reflecting a 6.1% decline from the same period last year. Meanwhile, new listings have surged by 12.8%, and total inventory has grown by 40.5% year-over-year. This influx of new listings suggests a robust market presence, despite the overall slowdown in sales.
Craig Tann, a real estate broker, remains optimistic, attributing the current market buzz to the spring home-shopping season and an increase in new listings. However, he acknowledges the influence of elevated mortgage rates, which Zillow reports at 6.7%, as a dampening factor on the market. Tann believes the seasonal increase in buyer activity presents an opportunity to manage the surplus inventory.
Nationally, the real estate market reveals similar trends, with 1.04 million homes on the market by the end of February, the highest February figure since 2020, and a 15% increase compared to February 2024. Zillow’s chief economist, Skylar Olsen, notes that while affordability remains a significant hurdle, recent reductions in mortgage rates could stimulate market activity. However, she cautions that economic uncertainty may temper this momentum, as potential buyers and sellers may adopt a cautious approach amid job and industry concerns.