The Las Vegas Valley has one of the highest rates of pending real estate deals falling through, according to a new report.
Approximately 17.9 percent of all pending home sales in the valley in January fell through, which is the third highest rate in the country behind Atlanta (19.8 percent) and Orlando (18.2 percent), according to the Redfin report. This is also an increase for the valley from January of last year when the rate was 16.4 percent.
Mike Roland, a Realtor and founder of The Roland Team in Henderson, said they are definitely feeling this on the ground right now.
“It doesn’t take much to blow up a deal these days,” he said. “Even the smallest issue can lead to a cancellation, especially with the lingering uncertainty surrounding the economy. On top of that, with inventory increasing, buyers have more choices and are becoming more selective. If there’s a rough inspection or appraisal issue, buyers aren’t sticking around like they would a couple years ago. In today’s slowing market, growing inventory means buyers have options, and they’re taking their time to choose wisely.”
Home prices in Southern Nevada stayed at record high prices in February as the median sale price is now $485,000, according to the Las Vegas Realtors, which pulls data from the Multiple Listings Service.
Nationally, more than 41,000 home purchase agreements fell through in January which equates to 14.3 percent of homes that went under contract that month. This is up 13.4 percent from January 2024 and is the highest cancellation rate since 2017.
Redfin’s report lists three main reasons for a large number of real estate deals falling through across the country, the first being that supply is rising and demand is falling.
“Housing inventory has risen to its highest level since 2020, giving homebuyers more options. At the same time, pending home sales fell to their lowest level on record, aside from the start of the pandemic, in January,” reads the report. “More supply and less demand means the housing market has tilted in buyers’ favor, with some house hunters backing out during the inspection period because a better house for them has come along, or at least the promise of a better house.”
There is also a higher level of economic uncertainty, according to Redfin, as buyers and some sellers are “getting cold feet due to widespread economic and political uncertainty. Tariffs, layoffs, and federal policy changes are among the factors contributing to an air of instability. Some people are choosing to stay put.”
Finally, Redfin said sticker shock is also playing a part as home prices across the country and in Las Vegas remain “stubbornly high.”
Contact Patrick Blennerhassett at pblennerhassett@reviewjournal.com.
