Any sign of stabilizing in Las Vegas market?

[Ju Feng]

Hi all,

I recently moved to Las Vegas. Currently in market for a primary residence but also looking to buy SFH rentals in the coming months and finally start my real estate investing journey here. Do any of you local experts see signs of the market cooling down here? I'm also in the process of selling my CA home and according to my realtor, the Bay Area market is definitely seeing some slowdown.

[Account Closed]

@Ju Feng Yes, the detached single family home market is cooling in Las Vegas. Our local MLS homepage has a "market watch" and available inventory has been increasing by about 100 homes per week. Also, the individual investors purchasing detached SFRs with financing have slowed down because the numbers don't make a lot of sense with increased interest rates and Sellers pushing list prices (even with the higher rents).

Currently there are 3867 residential homes/townhomes/condos active in our market. Here's the market watch from our MLS this morning:

New Listing (256)
Back On Market (48)
Price Decrease (115)
Price Increase (17)
Under Contract - Show (61)
Under Contract - No Show (172)

I'm personally seeing more Seller price decreases than increases. Sellers have been testing the higher end of comps but our market is in the process of turning like a big cargo ship. It's not going to be a quick turn but it's already in process of stabilizing and shifting to a more equal Buyer/Seller market.

Institutional investors are still present in our market but most are capped at a $475k purchase price. 

What did you think of our recent wind storms? Most people don't know how windy the desert is in Spring and this Spring was unusually windy. Now the heat is upon us. The monsoons start in July. Welcome to the desert! lol.

If you become serious about purchasing in Las Vegas I highly recommend a roof inspection in addition to a home inspection. Most Buyers are unfamiliar with tile roofs in Vegas. They consist of both tiles and a paper underlayment (felt) and plywood that degrade over a 20-30 year period based on the natural elements of heat, wind and rain. Do some research on roof maintenance and reroofs in Las Vegas and understand the condition/reroof costs before you purchase a home.

Welcome to Vegas! -HJR