A report released on June 25 by CoreLogic included a lot of great news and some concerning news about the Las Vegas housing market.
Las Vegas led the nation in the growth of home values and prices over the past year. The biggest gains in home prices were seen in Las Vegas, Phoenix, and Tampa. By contrast, Seattle, San Francisco, and San Diego saw the biggest home price losses.
"Las Vegas (7.1%), Phoenix (6%) and Tampa (5.6%) accounted for the highest year-over-year price increases [from April 2018 to April 2019]..." - CoreLogic report.
All of this means that over the past year, there has been a marked increase in home prices in Las Vegas which is great for sellers.
A deeper look at other information shows us that the median home price has remained steady at $300,000 in Las Vegas for the last three months. This indicates that the housing market may be cooling down.
Combine the stagnation of home prices with the nearly 91% increase in available inventory year over year and you have a market that appears to be shifting from sellers to buyers.
What does the future hold for the Las Vegas housing market?
The short-term will have the inventory still tight in Las Vegas. The arrival of a new football team, several massive tech and industrial projects, and a general migration to the city will drive the housing market for a few months.
It seems likely that the winter slow season will bring lower prices instead of simply stagnating prices.
Interest rates are likely to stay low, but many buyers have been pushed out of the market due to high home prices. Over the next year, Las Vegas, and the rest of the nation, are likely to see a softening of the housing market and lowering home prices. Many of those buyers will be able to return to the market.
The biggest advantage that Las Vegas has during this market softening versus the housing crisis of 2008 is that the overall economy is still very strong. This will allow home buyers to have the certainty of their jobs which didn't exist during the last economic slowdown and housing crash.
The Overall Summary
In general, now is the perfect mid-point between buyers and sellers. While housing prices are softening, buyers will still pay a decent price for a home. For buyers, the stagnant home prices make planning for and buying a home much easier.
For frugal home buyers, it might be wise to wait six months when home prices might actually drop. The affordability, including interest rates, will likely be there well into the future.