June saw a large increase in the value of homes. While single family homes prices aren't rising as fast as they did last year, the value of homes rose by 1.3% over May and 4.8% over the year before. For home sellers, that's the good news. For home buyers, not so much.
On the flip side, home sales around Las Vegas are down 11.1% from the same time last year. Inventories are higher than they've been since about 2010. In fact, inventories are up 80.3% over June of last year, though down half-a-percent over May of this year.
This may signal the end of a very long period of rapidly rising home prices, low inventory, and low mortgage rates.
As of this publication, the Fed had decided to cut interest rates by a 1/4 percent due to a slowing economy.
Typically, summer is the busiest time of year in real estate, so the slower sales and rising inventory make many nervous that this might signal a recession. Most analysts see that as unlikely, but that the housing market, along with the economy as a whole, will begin to slow.
2018 was a banner year for the Las Vegas area with builders selling more homes for higher prices than ever before. As home prices grew, however, buyers began to purchase less expensive townhouses and condos. This, combined with a slowly growing pessimism about the economy, has led to fewer buyers on the market and a reduced willingness to pay incredibly high prices on homes.