Nearly 20% of home sale deals in Las Vegas fell through in August, report says
Nearly 20 percent of residential real estate deals in the Las Vegas Valley fell through in August, according to a new report from Redfin.
The Las Vegas Valley ranked fifth in the nation when it came to home purchase agreement cancellations with 19.4 percent, according to Redfin. Leading the country is Atlanta with 1,532 or 21 percent of all deals falling through, followed by Jacksonville, Florida (20.5 percent), Orlando (20.2 percent) and Tampa (19.4 percent).
The Redfin report noted that roughly 56,000 home purchase agreements were canceled across the country in August, which equates to about 15.1 percent of all deals. This is a 14.3 percent increase from August 2024, and is the highest percentage amount in the month of August since 2017.
The report outlined the main reason there has been a rise in cancellations from last year.
“Buyers are skittish and selective due to high prices, high mortgage rates and economic uncertainty,” read the report. “They’re asking sellers for all sorts of repairs, price reductions and other concessions because a) it’s expensive to buy a home and b) it’s a buyer’s market, meaning buyers hold the negotiating power. There are roughly 500,000 more sellers than buyers in the market, which empowers buyers to negotiate because they have options.”
Southern Nevada real estate prices came down again in September for the second straight month from record highs set earlier this year, however listings continue to flood the market. Many experts within the industry point to a supply and demand imbalance largely thrown out of whack by a lack of land to develop in the valley during a critical time.
Las Vegas real estate, along with the rest of the country, has been on a roller-coaster ride since the pandemic when sales spiked as rates bottomed out due to pandemic restrictions, Covid-19 lockdowns and supply chain issues. Inflation then spiked and has since receded however Redfin said the average person has yet to adapt to the new world in which mortgage rates are well over 6 percent and home prices remain elevated.
“Many sellers are still operating like it’s 2021, assuming their home will sell as-is for top dollar,” read the report. “Some are having a hard time adjusting to the reality that it’s no longer a seller’s market because it seems like just yesterday that homes were getting dozens of offers and fetching tens of thousands of dollars over the asking price. Sellers who purchased their homes during the peak of the pandemic homebuying frenzy are also often unwilling to negotiate because they need to sell their homes for a certain price to avoid taking a loss.”
The report said that with all the supply on the market, buyers are biding their time and waiting for the perfect deal, or choosing to sit on the sidelines to see if the market will shift.
Contact Patrick Blennerhassett at pblennerhassett@reviewjournal.com.
