Mortgage rates, prices hinder tight Las Vegas housing market, LVR report says – KLAS – 8 News Now

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Single-family home prices fall $5,000 from December levels

LAS VEGAS (KLAS) — Mortgage rates that went above 7% last week will make it harder on homebuyers, another challenge in a tight Las Vegas housing market coming out of the slowest year for home sales since 2008.

Rates had moderated in recent months, but fewer homes are on the market than last year at this time, according to a report released Tuesday by Las Vegas Realtors (LVR).

And despite a drop of about $5,000 compared to December, single-family homes are holding their value, selling for 4.7% more than they did in January 2023, LVR’s report showed. Condominiums and townhomes increased $5,000 from the previous month, up 7.8% for the year.

The median price for a single-family home listed through LVR’s multiple listing service sold for $445,000 in January, according to the report. Condos and townhomes were at $275,000. LVR’s report excludes new home sales and homes sold by their owners.

The persistently tight housing supply is propping up home prices and hampering sales, according to Merri Perry, a longtime local Realtor who began her term as 2024 LVR president in January.

“Over the past few months, we’ve seen benefits from lower interest rates and relatively stable home prices here in Southern Nevada,” Perry said. “Now, if we could just get more homes on the market, we’d really be in good shape.”

A Forbes Advisor report last week quoted Freddie Mac’s chief economist saying a busier spring home-buying season is expected this year.

Perry sees that as a reason for optimism.

When homes do go on sale, they usually go fast. In January, 75.2% of homes and 77.7% of condos/townhomes sold within 60 days, according to LVR.

According to LVR, 2023 was the slowest year for existing local home sales since 2008. During 2023, LVR reported a total of 29,069 sales of existing local homes, condos and townhomes. That was down from 2022, when LVR reported 35,584 total sales.

LVR saw records fall in 2021, when 50,010 total properties were sold, beating the 2011 record by nearly 2,000 sales.

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