It’s a seller’s market in Las Vegas! If you plan to sell a property, you can expect a fairly smooth process thanks to high demand and low inventory. If you’re looking to buy, things are definitely trickier. There’s more competition, leading to bidding wars and high prices. When there are competing buyers, offers typically need to be 1-3 percent over list price.
Whether you’re buying, selling or doing both, it’s important to be informed on the housing market in your area. Here are five things to know about the 2022 housing market in Las Vegas.
1. Mortgage Rates are Rising
Mortgage rates jumped 1.5 percentage points during the first three months of 2022, the biggest quarterly climb in nearly 30 years. Part of this is due to inflation, which is at its highest level since 1981. As we move forward, experts are predicting that mortgage interest rates will be between 4.8 percent and 5.5 percent by the end of 2022.
2. Bidding Wars are Common
Bidding wars are becoming a common part of the home buying experience. With high demand and low inventory, it’s only natural that many homes on the market are getting multiple offers. In fact, this Redfin article reports that 7 in 10 home buyers face bidding wars. Competition is intense, and it’s expected to continue as long as inventory is low.
3. Homes are Selling Faster than Ever
Homes in Las Vegas are selling faster than ever before. According to a January report from Realtor.com, the average home spent 61 days on the market. Homes are selling even faster in metropolitan areas, such as Las Vegas. This is 10 days less than the rate in 2021 and 29 less than the rate in 2017-20.
4. Housing Inventory Remains Low
There’s a few key factors that are contributing to low housing inventory. These include a lack of new builds, lifestyle changes due to COVID-19 and historically low interest rates. The housing market boomed, but there hasn’t been enough homes to accommodate this interest. For instance, permits for new builds were behind 24 percent in 2020.
5. Housing Prices Keep Rising
There’s no end in sight for Las Vegas’ housing boom. Las Vegas-area home prices in January were up 26.2 percent from the same month last year, compared to a 19.2 percent gain nationally. March was also the eighth consecutive month that Las Vegas home prices rose faster than the national average. Bottom line: Don’t expect housing prices in Las Vegas to drop any time soon.
It’s clear that this is a very different housing market from what we’re used to. If you’re looking to sell your home for top dollar, contact We Buy Any Vegas House today. We’ll make you a competitive cash offer, and you get to save on realtor commissions, closing costs, home inspections and appraisals!