Houses are flooding in Las Vegas markets as retirees flee the city, investors cashed in
New home lists continue to flood the market, offering buyers more options than they did during this time last year, while Las Vegas leads.
According to Realtor.com® June Monthly Housing Report, across the United States, newly listed homes increased by 6.2% from last June. Las Vegas saw the highest growth in housing stock, up 77.6% year-on-year.
Robert Little, who has been selling real estate since 2007, has changed a lot in the area over the years. He said that most buyer demand in the region has cooled due to higher interest rates.
“In addition, many people who move to Las Vegas have a hard time selling their homes in other markets, which delays or blocks their ability to buy here, thus slowing down local activity,” he told Realtor.com.
Overall, housing inventory in all four regions found the largest increase in housing inventory in the west (+38.3%), followed by the South (+29.4%), the Midwest (+21.3%) and the Northeast (+17.6%).
Sellers form the Las Vegas market
Little said there are many sellers entering the market right now.
“Retirees choose to be closer to their families, looking for cooler summer climates or transitioning to assisted living communities. Some older homeowners are also selling to live with relatives who can provide support,” he said.
“At the same time, many investors who buy real estate at lower prices now choose to cash out and redistribute their funds to other opportunities.”
New data from Realtor.com shows that the new listing peaked in April and each listing has been declining in the past two months, indicating that listing momentum is slowing as “potential sellers are retreating from the market.”
“The increase in home listings is largely due to slower buyer demand, driven by high interest rates that affect affordability,” Little said.
But he explained that his clients are adjusting some sellers to change expectations and offer offers such as closing cost assistance or opening price negotiations.
“Others are firmly keeping prices, and market conditions are expected to improve,” Little said. “We also see prices lower for aggressive sellers who understand the importance of staying competitive in a changing market.”
The increase in inventory in Las Vegas is not isolated. In Washington, D.C., SAW (+63.6%) in stocks grew compared to a year ago. Raleigh, North Carolina (+56.4%) followed closely behind. Throughout the United States, the number of active stocks exceeded one million for the second consecutive month.
(realtor.com)
(realtor.com)
Market Roulette
The charm of the Las Vegas Strip is famous in the city. Casinos make billions of dollars in revenue, thus boosting the city’s economy, but cash is not flowing as it used to be.
The Nevada Game Control Commission’s fiscal year 2024 report showed overall revenue hit a record $31.5 billion, but net revenue fell 24.4%, including 40.4% in the Las Vegas Strip.
Total revenue is defined by the money customers spend on games, rooms, food, drinks and other attractions. Net income is net income after payment in the casino, but before deducting federal income tax and levied extraordinary fees.
Little said the game slowdown does not seem to be a major factor in causing more homes to live in longer homes.
“The volatility in the Las Vegas game market has not significantly affected our housing prices,” Little explained. “Over the years, Las Vegas has grown into a more diverse economy, no longer just depends on the game.
“We haven’t seen a massive wave of sales from casino workers. In fact, our housing market is still relatively resilient compared to the rest of the country.”
According to Realtor.com, the median price of the Las Vegas-Henderson-North Vegas Metro is $479,988 in June.
Little added: “While the months of available inventory did increase by 12.8%, we are still in a 3.6-month supply and technically remains the seller’s market.
“Las Vegas continues to attract buyers thanks to its favorable tax structure, ideal climate and strong lifestyle facilities,” Little said. “When national conditions increase, especially interest rates, Las Vegas will have a full attitude to see another person worthy of appreciation.”
