Summer is here, and the Las Vegas real estate market continues to stabilize. Mortgage rates are tied to the 10-year treasury, and as they have been rising lately, the stock market has also been falling. In general, for a 30-year mortgage, the interest rates were around 4% in April, 5% in May, and 6% in June. The rates are still continuing to bounce up and down, but in general, this means buyers may have less “buying power.” This effectively lowers demand.
Looking back at the market of 2019 provides a better idea of what getting back to “normal” might look like because it was before the COVID-19 stimulus and record-low interest rates.
When you look at the guard-gated residential sales that we specialize in, there were 73 closed sales in June 2022. This is down from the 96 sales in May, but it’s still comparable to the 70 sales in June 2019. There were 81 pending sales at the end of June 2022, which is down from 115 in May and 97 in June 2019. This lower number of pending sales points to significantly less closings next month.
As of June, there were 406 guard-gated homes for sale, which is a significant increase over the 314 of May. However, it’s still short of the 553 in June of 2019. So, even though the forecast looks like there will be a trending decline in sales volume, the inventory is still relatively lower with several price points still posting less than a 6-month supply of inventory.
If you are looking to buy or sell, keep this in mind: Just like we saw in the 2000s, many agents with no experience were able to have moderate success in this wild market. Now that we are trending back to a normal market, it’s more important than ever to hire a team of professionals with experience negotiating, marketing, and selling luxury properties. If you would like to learn more, please contact us at 702-605-7482.