Las Vegas real estate market shows signs of adjustment
LAS VEGAS (KTNV) – A robust housing market that shows signs of adjustment. The Las Vegas Realtors trade association shows that the Las Vegas housing market continues to be hot with rising home prices, but sales are now starting to decline.
“Home means everything to us. My wife and I never planned to leave this house.”
John Zenor loves his Centennial Hills home where he and his wife have lived for 22 years, but to enjoy a more active retirement, they decided to sell it.
“The right person for this house was very important,” he said.
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It took a long time to find this person. The 4-bedroom, 3-and-a-half-bathroom home was listed at around $730,000. Zenor says there have been several offers and a potential buyer has been found. Due to loan issues, this buyer failed and the search for a new one took a few more weeks.
“Of those 12 screenings, although great interest was expressed, only one person made an offer and that person had money,” ZENOR said.
This is a trend observed throughout the valley. Las Vegas Realtor data released on Friday shows home prices continue to rise but sales are starting to fall. The median price for single-family homes was $475,000 in April, up 3% from March. However, the available inventory of homes for sale is up about 22% from March. Zenor realtor David Lee of Painted Desert Realty says rising interest rates are playing a big role.
“I believe once it hits seven, eight, nine percent, that’s when we’ll see the majority of a downturn coming,” he said.
He says the high price trend and rising interest rates will slow sales.
“Sellers sometimes try to overcharge their homes, so that combination on top of the interest rate going up, the homes will stick around a bit longer and that will give buyers a bit more opportunity to come in,” did he declare.
Zenor says he can’t buy a comparable house that’s overpriced. He is now committed to renting because he wants to enjoy a more carefree life. As for the money he gets…
“I personally plan to spend 90% of it. I’m just having fun with my wonderful wife,” he said.