Current Las Vegas Market Individual Charts
Current Las Vegas Market Report
2023 is off to an auspicious start! January SFR closing were only 1,329 units, which is 48% behind January 2022 and the worst start to any Greater Las Vegas residential real estate year since 2008. However, it seems that the activity increased during the last week or so of January. Listings taken are up even as available listings and homes in escrow remain down. There are right at six months of inventory for SFR listings, but it ranges from 3 months to 16 months – depending on the community.
The median sales price of SFR closings remained flat at $425,000 while the SFR average closed sales price increased 3.3% to $531,741. This is more evidence that market values and interest rates are not linked as many would have you to believe. The luxury market closings improved to 75 closings in January – and again we saw an increase in luxury home prices.
The real estate market has rapidly gone from only a few weeks of marketable inventory to right at six (6) months of inventory. The average days on market increased to 57 days as we saw some older inventory close escrow last month. That contributed to lowering the Over Pricing Index to 60%. With six months of SFR inventory, buyers and sellers have nearly equal initial negotiating leverage in most communities throughout Greater Las Vegas.
Clearly the market continues to adjust 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. January 2023 saw an increase of cash purchases as home financing slowed a bit.
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! The closing “brakes” are on, but the market is not fraught with the same forces and variables that created the 2007/2008 market problems!
More importantly, do not pay that much attention to media articles that are gloom and doom – even if they are sprinkled with some factual elements. If that fails – please treat yourself to a full news blackout – and make a few more sales instead! LOL
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2 thoughts on “Greater Las Vegas Real Estate Market Update – February 2023”
Forrest, thank you for the information and perspective.
Forrest, thank you for the details and the balanced perspective on this market. I hear the public inquire about the market collapsing as in 2008 and know this market does not exist in the same conditions as previous. Great to hear- have a media blackout! They do not serve the public well with full information.