Retirees on a budget who relocated to Las Vegas, NV, drawn by previously affordable homes and low property taxes, are now eager to leave as soaring interest rates and temperatures take a toll.
Sin City is seeing a surge of single-family listings hit the market, with new homes pouring in daily.
Sellers are looking to cash in on their equity and escape the desert heat, which has gotten even hotter in recent years.
Investors who rent out their properties are also trying to cash out. But buyers are holding back due to high mortgage rates and an uncertain economy.
According to the latest June Monthly Housing Report from Realtor.com, new listings across the US rose 6.2 percent compared to June last year.
However, nowhere else is the pattern more pronounced than in Vegas, where the number of homes available has surged by an astonishing 77.6 percent compared to the previous year — the highest increase in the country.
‘We do have more inventory at the moment,’ Las Vegas realtor Avi Dan-Goor told the Daily Mail.
‘It’s higher over the same period last year.’
Sin City has has a surge of listings hit the market, with new listings pouring in daily
Las Vegas realtor Avi Dan-Goor
Dan-Goor says sellers are spooked that if they don’t sell now, they’ll never make a profit off their home.
‘It’s fear-based from what I’m hearing from people that reach out to me,’ he said.
‘It’s a reaction. A reaction to the news, to what people are telling them. It’s a fear that things are going to get really terrible.
‘They worry that if they don’t sell right now, they’ll miss out on the current pricing advantage because, over the past decade, Las Vegas has experienced a price increase since they initially bought.’
He says the buyer hesitation is also due to the market flooding with listings.
High inventory backfires, he explained, as it creates a holding pattern for buyers. ‘They’re saying “well, I like this but let’s see what else comes on the market.”‘
When the inventory comes on the market at a much faster pace than it’s selling it’s just a vicious cycle.’
Demand has cooled so significantly across all of the US, any would-be buyers relocating to Las Vegas are finding themselves unable to sell homes in other markets, which is delaying or derailing plans to purchase in the city.
In Las Vegas, housing inventory has skyrocketed a staggering 77.6 percent year-over-year — the highest in the nation
Buyer hesitation is also due to the market flooding with listings
Data shows that the Western region overall is leading in home inventory growth at 38.3 percent.
The listing boom in Las Vegas is due to retirees, mostly.
A wave of Americans aged 55 and older are trying to sell, choosing to move closer to family for care and companionship as they age, escape the brutal summer heat, or transition into assisted living.
At the same time, investors who bought low in recent years are now cashing out, wanting the money for new opportunities or to downsize.
Even though new listings peaked in April and have slightly declined since, the overall trend shows a market with more and more inventory and slower buyer movement.
With buyers pulling back, some sellers are adjusting, even offering closing cost assistance, becoming more flexible on price, or reducing their listing to stay competitive.
One Las Vegas home, for example, that has been listed at $619,900 for over two months, recently dropped the price by $5,000.
Yet others are standing firm — confident the housing market will eventually rebound.
Even though new listings peaked in April and have slightly declined since, the overall trend shows a market with more and more inventory and slower buyer movement
Meanwhile, Las Vegas’ world-famous casinos still bring in billions to the economy
The gambling drop hasn’t significantly affected housing prices
‘It could change in a week and what I mean by that is not all prices are going to drop,’ Dan-Goor told the Daily Mail.
‘It’s Vegas. One week can be crickets the next week the phone is blowing up with showings. Vegas goes whichever way the wind blows.
‘The market will eventually adjust and then level off.’
Meanwhile, Las Vegas’ world-famous casinos still bring in billions, with the Nevada Gaming Control Board reporting a record $31.5 billion in total revenue for the 2024 fiscal year.
But net income in the state dropped 24.4 percent overall. That number includes a staggering 40.4 percent decline on the Strip. People are still spending, but they’re spending a lot less.
The gambling drop hasn’t significantly affected housing prices though, and experts agree it’s not the main driver behind the growing property surplus.
Dan-Goor says that new people will also ‘discover’ Las Vegas and that the environment is changing to become a more well-rounded city that’s not just lined with casinos.
‘Every local will tell you that in the past, we’ve seen a rapid change in the city and all of a sudden blowing up into a major city with traffic and construction and entertainment and sports events,’ he says.
‘So if the interest rate start to drop drastically that always creates a buying frenzy.’
New people will ‘discover’ Las Vegas and that the environment is changing to become a more well-rounded city that’s not just lined with casinos
The median list price in the Las Vegas-Henderson-North Vegas metro stands at $479,988
The the city’s tax benefits, sunny weather, and vibrant lifestyle were once top-notch
Despite the surge in listings, Las Vegas technically remains a seller’s market, he added.
The median list price in the Las Vegas-Henderson-North Vegas metro stands at $479,988.
Dan-Goor hope the city’s tax benefits, sunny weather, and vibrant lifestyle continue to attract interest.
And while current conditions reflect a market in flux, Las Vegas could see another boom once interest rates ease and buying momentum picks up again.
He advises potential buyers to snap up a home now if they can.
‘I’ve always said that sitting and waiting in real estate is a losing game,’ he said.
‘It’s going to level out. I don’t think this current market is the new norm.’
