Las Vegas Valley leads nation in increase in homes for sale, report says
The Las Vegas Valley is leading the nation for the rise in the number of homes for sale year over year, according to a new study from Zillow.
According to Zillow, approximately 12,620 homes of all types are up for sale through the end of May. This is the biggest increase (50.2 percent since May of last year) out of any of the largest metro regions in the country, according to the Zillow report.
The report noted that home values have fallen in 22 of the 50 largest cities in the country over the past year and sellers across the U.S. have cut prices on approximately 26 percent of listings.
Mike Roland, a Realtor and the founder of The Roland Team in Henderson, said inventory has increased approximately 60 percent since this time last year in the valley, and he’s noticing it on the ground.
“Even well-priced homes, some listed at or below recent comparable sales, are seeing little to no activity. While online interest remains strong, plenty of saves and favorites, buyers are much slower to take the next step and schedule in-person tours,” he said. “Unless a home is priced extremely aggressively or stands out as the best on the block, it’s not generating much traction. That said, homes are still selling, they’re just moving at a much slower pace than we’ve grown used to in recent years.”
Average home price, typical mortgage payment
Zillow has the average price for a house in the valley at $438,477, up 1.6 percent year over year. In the valley, 31 percent of the listings through the end of May had a price cut, well above the national average of 25.8 percent. Newly pending listings are down 10.5 percent in the metro, well below the national average of 0.9 percent.
The typical mortgage payment for a house right now in the valley is approximately $2,857 (with 10 percent down), which is above the national average of $2,388. The average rent for a single-family home in the valley is $2,260, just below the national average of $2,296.
Condo and townhouse prices are also rising in Southern Nevada, according to the latest data from Las Vegas Realtors.
The median price of a condo or townhome sold in May was $307,000, up 1.4 percent from April and up 4.1 percent from May of last year, according to the trade group, which pulls its data from the Multiple Listing Service. Only 559 condos and townhouses were sold in Southern Nevada in May, a 2.8 percent increase from April but down 19 percent from May of last year.
Kara Ng, a senior economist for Zillow, said a number of factors are weighing on the market right now and there is also a noted rise in people renting instead of buying their first starter home. She said economic uncertainty in the wake of the Trump administration’s trade tariffs earlier this year which were followed by losses in the stock market contributed to slower newly pending sales than expected in April, which fell 2.5 percent from the year before.
Ng said tariff concerns have eased a bit and the stock market rebounded in April and the market is clearly swinging in favor of buyers now.
“Homebuyers today have a few factors in their favor: Rates are lower than last year, they have more homes to choose from, and sellers are cutting prices at record rates,” she said. “But they still face major obstacles, particularly saving up enough for a down payment and finding a home within their budget. Many families looking to upsize are realizing it’s cheaper to rent a starter home than to buy one.”
Contact Patrick Blennerhassett at pblennerhassett@reviewjournal.com.
