Las Vegas Valley home sellers are cutting prices on their listings at an increased rate compared to last year, however it doesn’t appear buyers are biting, according to a new report from Zillow.
Sellers cut prices on 18.5 percent of the listings currently on the market through the end of February, a 12.8 percent increase from last year at that time, according to the report. Zillow has the average home price in the valley at $430,277, a 4.2 percent increase year over year and a 45.6 percent increase from before the pandemic started.
New listings in the valley are also up 12.8 percent through the end of February compared to the same time last year, according to Zillow. Total inventory is up 40.5 percent from the same time last year.
Craig Tann, a broker and owner of Huntington & Ellis real estate agency, said despite the recent data, he is optimistic about the market’s future this year.
“There’s a real buzz in the market right now, a noticeable shift in energy as we move into the spring home-shopping season. Compared to the slower start we saw last year, this year feels different,” he said. “Sellers are coming out strong, and we’re seeing a surge in new listings hitting the market.”
Elevated mortgage rates continue to dampen the real estate market across the country as Zillow has the 30-year fixed rate sitting at 6.7 percent, but Tann said he is hopeful the spring will bring a rebound in sales.
“When you pair that with the seasonal uptick in buyer activity, we’ve got a real opportunity to absorb some of the excess inventory that’s been sitting,” he said. “Pricing is everything right now. Sellers who are dialed in and understand where buyers are at are seeing results. Those who overshoot may need to adjust expectations and recalibrate. The market rewards realism.”
Las Vegas residential real estate has been in a slump since record high sales during the pandemic when interest rates bottomed out, creating a buying, selling and refinancing frenzy. Nationally, approximately 1.04 million homes were currently on the market at the end of February, which is more than in any other February since 2020, and 15 percent more than February 2024.
Skylar Olsen, chief economist for Zillow, said the spring season is still down, however there may be positive linings in the figures.
“Affordability is still a massive challenge for those who have been waiting to buy a home, but the lower rates we’ve seen so far in March are taking the edge off,” she said. “Rate dips tend to energize buyers and sellers both, if they continue or hold, we should see more activity. Economic uncertainty is a counterbalance, one that will be felt in some areas of the country more than others. People tend to shelter in place when the future of their job or industry is uncertain.”
Contact Patrick Blennerhassett at pblennerhassett@reviewjournal.com.
