Greater Las Vegas Real Estate Market Update – October 2022

Current Las Vegas Market Individual Charts

Current Las Vegas Market Report

Market Overview

2022 closings are 19.7% off the 2021 pace but continues to track closely to the 2019 market; closings at this pace could easily end up at 32,000 – 35,000 by the end of the year. Available SFR inventory improved only slightly from 8529 units to 8542 units while listings taken in September were 900 less than in August. The SFR and Condo/Townhome market segments sit right at 5 months of available inventory. The average days on market increased to 33 days. This metric should be rising but so many “older” listings are constantly being relisted to create the impression that the listing is new by reflecting fewer days on the market. No one is fooled by this any longer.

The median sales price of SFR closings held flat at $450,000 while the SFR average closed sales price fell from $540,773 to $528,892 for a decrease of 2.2%. The luxury market closings dropped to 99 last month with a modest increase in market values. Clearly, more closings are occurring at lower price points. The last chart below really shows the shift in sales by price point.

One caution – market prices are not falling consistently across the market as evidenced by rising prices in the luxury market! Each community, subdivision, and price point must be considered on a case-by-case basis.

Heading into the 4th Quarter

The real estate market has rapidly gone from only a few weeks of marketable inventory to nearly 5 months of inventory. That coupled with flat sales and a significant drop in listings taken have caused the over pricing index to jump to 51%. Listing agents must seriously consider the current supply and demand profile when preparing a comparative market analysis for sellers.

Clearly the market is adjusting to the political, economic, and financial conditions that have been thrust upon us. The consumer as well as the real estate professionals will also adapt to these changes. For example, some potential buyers are sitting on the sidelines, but others are moving forward with perhaps a smaller house for now with the belief that one day they will be able to refinance into a better mortgage. Others are considering attached homes as we see the condo and townhome sales continue at a very good pace.

Most importantly – even as we see sales potentially slowing for a while, we will not revisit the market collapse of 2007! This market has challenges, but is far healthier than that!

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