Las Vegas is the fastest cooling housing market in US, report says

The Las Vegas Valley is cooling faster than any housing market in the country right now, according to a new report from Redfin.

Home sales for June are down 10.2 percent year over year and inventory in the valley is up 44.8 percent, which is the biggest jump of any of the largest metro regions in the country.

Redfin called the Las Vegas Valley a “pandemic boomtown” in its report, noting that home prices have remained unchanged year over year, but homes that sell are seeing a 4 percent drop in pricing. The average time to sell a home in the valley now sits at 51 days, which is 15 days slower than June of last year, well above the national average of 40 days and six days slower than last year for the entire country.

Another Redfin report also found that Las Vegas is third in the country (a 12.2 percent drop) when it comes to pending sales. Cherra Bergman, a Realtor based out of Las Vegas who works for Redfin, explained how the economic markers are impacting the local real estate scene.

“Buyers have more inventory to choose from than they’ve had in years, so they feel like they can take their time. Even when they find a home they really like, they often wait to find something better,” she said. “House hunters are cost-conscious because mortgage rates are high, so many are opting for new-construction homes since builders here are offering great incentives like mortgage-rate buydowns and money toward closing costs in order to offload inventory.”

Behind Las Vegas, the fastest-cooling residential real estate markets right now are Sacramento, Denver, Fort Lauderdale, Florida, Orlando, San Diego and Miami. The Redfin report noted the market turnaround right now is hitting a specific portion of the country more acutely than others.

“Many of these metros are home to Sun Belt cities that exploded in popularity during the pandemic, and in turn experienced a surge in home prices and homebuilding,” read the report. “Now, these markets are slowing because the number of homes for sale is rising but there are fewer people who can afford to buy them.

Contact Patrick Blennerhassett at pblennerhassett@reviewjournal.com.