The COVID-19 pandemic really did a number on housing markets across the country – some in good ways, some in bad ways. For Las Vegas homeowners, the pandemic was a bit of a golden age that saw home prices increase dramatically every single year between March 2019 (pre-COVID) and March 2022.
Many homeowners were hoping that trend would continue throughout 2022 and into 2023, but something happened between March 2022 and March 2023 that Sin City hasn’t experienced in a long time – home prices started to decrease. While it was felt across the nation, it sent a lot of homeowners into a panic.
Should Las Vegas homeowners be worried, though? A closer look at recent history says no – Las Vegas homeowners have nothing to worry about. While home prices are dropping and are likely to continue dropping in the near future, it’s important to note that home prices are still higher than pre-COVID days.
How Much Does a House Cost in Las Vegas?
According to Rocket Homes, the median price for homes in the Las Vegas metro area was just over $400,000 in November 2023. While that is down $20,000 (4.7%) from this time last year, the bigger picture tells us it’s more than $125,000 more than the median home prices in March 2019 (pre-pandemic), and it is now plateauing.
Here’s a look at the average cost of a Las Vegas home by size:
- 1 bedroom costs $199,000, compared to $205,000 this time last year
- 2 bedrooms cost $282,000, compared to $293,000 this time last year
- 3 bedrooms cost $394,000, compared to $412,000 this time last year
- 4 bedrooms cost $495,000, compared to $514,000 this time last year
- 5+ bedrooms cost $657,000, compared to $681,000 this time last year
Not only is the median sale price dropping, but the number of homes sold is decreasing (by 14.9% over the past month) and more homes are selling for under the asking price – meaning homeowners are having to lower their prices to account for the low demand. It’s a vicious cycle that Las Vegas is, unfortunately, in. Still, Las Vegas remains one of the best places to live.
Why Are Home Prices Dropping in Las Vegas?
Home prices are definitely dropping in Las Vegas, but they are still above the national average and even more-so above the pre-pandemic days. While no one wants the Las Vegas real estate market to slow or cool down, it’s not the end of the world and Vegas homeowners still have something to hang their head on.
With that said, you might be wondering why home prices drop in Las Vegas and whether or not they’ll ever return to where they were over the past few years. While the NV housing market trends will rebound at some point, there are a few things holding the city back – don’t worry, we’ll break them down one by one for you below:
Fewer Homes Are Selling Above Asking Price
A hot housing market encourages more bidding wars and higher housing prices that usually exceed the asking price. Unfortunately, a cold housing market means fewer homes sell above the asking price – in fact, a strong majority of homes in Las Vegas are currently selling at or below the seller’s asking price.
According to Rocket Homes, there were a total of 1,169 homes sold or pending in Sin City in November 2023 – not only is that number down 15% from October, but more than 54% of those homes were sold under the asking price, and another 27% of them were selling at the asking price – a combined 81%.
A total of 226 homes (of that 1,169 total) were sold over the asking price – accounting for only 19% of all sales in Las Vegas in Nov. 2023.
Homes Are Sitting On the Market Longer
In May 2022 – when the Las Vegas housing market was at its peak – homes were sitting on the market for 23 days (on average). By May 2023, that number doubled to 46%. For comparison, that’s about what the ‘days on market’ was before the COVID-19 pandemic sent the entire world into a sudden frenzy.
When homes sit on the market longer than expected, sellers are forced to do one of two things – stay patient and wait for the right buyer or drop the price in hopes of attracting new prospects. That seems to be what a lot of homeowners and sellers are doing in Las Vegas, but only when it makes sense to do so.
Higher Mortgage Rates
Another reason why home prices are decreasing is because mortgage rates are increasing. This is something we see often when the federal government raises interest rates – prospective buyers have less money to work with, which means offers are lower than expected, which results in buyers dropping their prices.
As of right now, mortgage rates are expected to stay between the 7-8% range throughout 2024 and aren’t expected to drop below 6% anytime soon, but they are expected to start dropping eventually – they have to, right?! For those who need to sell quickly, don’t panic – you have options and we’re prepared to help!
Lower Demand
If there’s one thing a seller wants to see in a housing market, it’s demand – without it, you’re going to have a hard time finding a buyer, and, even when sellers do, it won’t be a price that puts a smile on their face. Right now, in Las Vegas, sellers don’t have a lot of smiles on their faces because demand is low.
People just aren’t that interested in buying a home right now. It could be because of the mortgage rates or it could be due to personal reasons – either way, buyers are hard to come by in Sin City.
Are You Ready to Sell Your Las Vegas Home?
Are you having a hard time selling your home in the current Las Vegas market? Do you need the cash right away to help pay off outstanding debt or bills? Are you trying to avoid Las Vegas realtors? Is your listing not receiving the attention you hoped for? If you answered ‘yes’ to any of those questions, contact us right away – we want to talk to you!
At Sell Your House Fast LV, we’ve been buying homes in the Las Vegas area for years. We have cash in hand and are willing to make you a no-obligation, completely free, and 100% fair cash offer. If you need to close a sale quickly or are interested in selling your house as-is, don’t hesitate to reach out to SYHF LV!
