Why do Las Vegas condo sellers outnumber buyers?

The Las Vegas Valley’s condo market is the 13th most imbalanced among the biggest 50 metropolitan regions in the United States, according to Redfin, as the country appears to be undergoing a shift.

In August, there were 853 potential condo buyers in the valley, compared with 2,449 sellers, for an 187 percent imbalance towards buyers, according to new data from Redfin.

Across the country in August there were about 72.3 percent more condo sellers than buyers, making it the fifth straight month with at least 70 percent more sellers than buyers. Redfin said this spring and summer have been the strongest buyer’s market for condos dating back to 2013, with the exception of April 2020 at the start of the COVID-19 pandemic.

Las Vegas condo prices appeared to have hit a few peaks recently, as the median sale price hit $260,000 in June 2022 and then it dropped to $225,000 in January 2023, according to Redfin. That figure then climbed to $269,000 in August 2024 but has since come down to $245,000 in August of this year.

The high water mark for sales was 751 condos sold in the Las Vegas Valley in April 2021 during the pandemic-era buying and selling frenzy when interest rates bottomed out. Since then sales have gradually but consistently (with a few smaller peaks) come down, as in August only 265 condos were sold, according to Redfin.

Inventory of condos for sale dropped to 1,012 in June 2023 and have steadily risen as in June 2,181 condos were on the market, which appears to be the latest high water mark. In August, 2,019 condos were listed for sale.

What does this mean for condos in Las Vegas?

Historically, when a real estate cycle has concluded, a metro region’s condos and townhouse market is first to see a drop in sales, prices and inventory. Redfin Senior Economist Asad Khan said condo buyers are clearly in the “driver’s seat” and have much more bargaining power than sellers.

“Condo buyers can negotiate prices down and ask sellers for concessions, and they have a lot of options to choose from,’ he said in a statement. “Even though condo prices are still fairly high and HOA fees are rising, condos are still more affordable than single-family homes. That’s especially true for people planning to hold onto their condo for several years. With some would-be condo sellers pulling back, buyers may not have this much negotiating power for long.”

Khan noted in a new Redfin report that a potential rise in rental rates expected to hit the entire U.S. housing market due to a slowdown in multifamily construction may mean now is the time to buy.

Overall statistics for condos across the nation are heavily influenced by Florida as the state has approximately 1.5 million condos, which is approximately one-fifth of the entire market, and Miami’s condo market is leading a price reduction surge that has now hit other cities such as Austin, Texas and Atlanta. Redfin’s report noted there are three other main drivers for the overall condo and townhome market right now, the first being price.

“Near-record prices and high mortgage rates mean sellers outnumber buyers across all property types, but the gap is especially large for condos because condo-specific costs are rising,” read the report. “Slow condo sales have pushed prices down slightly, but prices haven’t plummeted. The typical condo sold for $350,000 in August, down 1 percent year over year. Mortgage rates are still double pre-pandemic lows.”

Homeownership association (HOA) fees are also weighing on the condo market across the country, according to Redfin’s report, as it said “owning a condo has become not only increasingly expensive, but also increasingly complex.” The report states a number of states have imposed tougher rules on owners regarding a number of issues including balconies and inspection requirements.

Looking at condo values long-term, Redfin said they are relatively “stagnant” as well, growing only 3 percent since spring of 2022 to spring of this year, and right now one in 10 condos are at risk of selling at a loss. Investor purchases of condos have also cooled dramatically, dropping 13 percent year over year up until the end of the second quarter of 2025.

“Some condo investors are cashing out because the long-term and short-term rental markets have cooled, and investors are hesitant to buy for the same reason,” read the report.

Contact Patrick Blennerhassett at pblennerhassett@reviewjournal.com.