The current median home sale price, $461,700 is growing 5.8% YoY. Moreover, homes are sitting on the market for 38 days. This indicates that the real estate market in the Silver State is now slightly less competitive.
Additionally, only 3,733 homes sold in June 2024, down from 4,052 in the previous year. Sellers are receiving fewer offers. Such inactivity in the market is mainly due to the recent NAR settlement. People are anxious about the selling prices and agents’ compensation.
The NAR settlement has removed the buyers’ agent compensation and many MLSs have followed the suit. It will probably reduce the home selling prices. As a result, buyers will have improved affordability along with low mortgage rates.
Here are some tips for you to sustain in the market:
- If You Are a Home Buyer: The current high-inventory of 14K homes and the expected drop in home prices can benefit you. The low interest rates at 6.59%-6.60% are now in buyers’ favor. Also, in case of low housing demand and prices, you can request for seller concessions.
- If You Are a Home Seller: The correction in the home prices is long overdue. In the wake of NAR settlement, home prices may drop a little more. If you’re a seller, you can still make profits on home sale before prices potentially drop.
So, How is the Real Estate Market in Nevada?
Balanced! The number of homes for sale increased in June 2024 by 36.7% compared to 2023. It’s been consecutively growing for eighth month in a row. Single-family homes for sale are up by 5.1%, and condos by 4.2%.
- Median Days on Market: The median days on the market for homes for sale are 38 days, down by 2 days YoY. This trend suggests a cooling demand in the Nevada real estate market.
- Housing Inventory and Supply: If you’re a buyer, you have more inventory to choose from. Homes for sale grew by 16.4% YoY. Currently, there are 14K homes for sale in Nevada. Also, the average months of supply are 5 months.
- Average Home Prices: The average median home price in Nevada is $461,700. In 2024, experts predict the median sale price may decrease due to the increased inventory. Currently, the sale-to-list price ratio is at 98.8%, with an increase of 0.1 pt YoY.
- Home Sales: As per June 2024 data, home sales decreased by 7.9% YoY! Only 3,733 homes were sold, down from 4,052 in June 2023.
- Average Rent Prices: Rental costs vary statewide. An average tenant in Reno pays $1,632, while the one living in Sparks pays $1,614.You should check the rent rates in your region.
Why Is Nevada a Buyer’s Market Now?
Buyers have more options to explore. Additional housing supply can balance the Nevada real estate market and stabilize home prices. Let’s look at some more facts:
- More Days on the Market: Homes are spending more days on the market. This is visible in metro cities like Spring Valley, Winchester, and Boulder City, homes spend an average of 35 to 59 days on the market.
- Low Housing Demand: The demand in North Las Vegas is low with only 301 homes sold in June, down from 371 last year. Only 16 homes were sold in Boulder City, down by 20% from last year.
- More Homes Have Price Drops: In June, 26.8% of homes had price drops, compared to 22.2% last year. This trend indicates a gradual shift toward a buyer’s market.
- Low Mortgage Rates: Mortgage rates remain near historic lows, ranging between 6.59%-6.60%. So, this is a great time to lock in a low rate and get pre-approved for a mortgage now.
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Nevada Housing Market Predictions 2024
Here are the predictions for Nevada’s housing market in the remaining months of 2024 and 2025:
- Number of Home Buyers Will Increase: Higher inventory and homes staying for long in the market will bring home shoppers back to the market.
- Interest Rates are Expected to Drop: Mortgage rates hit 6.34% in July, 2024. NAR predicts the average interest rate will drop to 6.3% by the year end. It will attract more buyers to apply for the loans.
- New Home Constructions Will Shoot Up: 33.4% of single-family homes for sale in Q1 were newly built. Construction of homes has soared and builders are responding to homebuying demand in Nevada. This is fueled by remote work and low mortgage rates.
- Home Prices Will Drop: After a period of sluggish growth, home prices are expected to begin a gradual decline.
- iBuyers Will Continue to Make Lowball Offers: iBuyers like Opendoor and Offerpad, which once offered 104.1% of market value in 2021, now offer around 70%. Such lowball offers to sellers will increase opportunities for individual buyers.
Bonus Prediction: Buyer Broker Commissions Will Be Negotiable!
In a shocking turn of events, the NAR settlement has completely eliminated buyer agent fees from the MLS. Let’s understand its impact:
- Buyer Agents Will be Affected: With buyers now responsible for directly paying their agents, many may choose to find their homes on their own. This may very soon render buyer agents obsolete.
- Seller Concession Will Increase: Without the obligation to pay buyer agent commissions, sellers might see increased requests for seller concessions and offline transactions. Additionally, builders are offering significant concessions to attract buyers, further influencing the market dynamics.
- Builders Will Compete More: Home builders are persuading buyers to buy new construction homes with mortgage buydowns worth $30K!
- Sellers May offer Fees for Services: Sellers may offer at least 1%-2% fees to the buyer agents in order to sell their homes quickly. Increasing competition from builders may also cause sellers to pay extra fees to buyer agents.
Sitzer/Burnett v. NAR
The Bombshell Lawsuit that Could End Buyer Agent Commissions
Is the Housing Market in Nevada Going to Crash?
A housing market crash in Nevada is unlikely. Nevada home values have been up by about 51.94% over the past 5 years. A positive trend is predicted for the next five years by the analysts.
The job market remains robust, with an unemployment rate of just 5.2%. Additionally, the average cost of living in Nevada is $2,376, which is 1.09% more than the average in the country.
This affordability, combined with strong economic fundamentals, makes a housing market crash in Nevada unlikely.
2024: Is it a Buyer’s or Seller’s Market?
The housing market is expected to lean more in favor of the buyers in the latter half of 2024. Home prices are rising slowly, and the number of homes for sale has increased by 5.2% YoY. Buyers now have more choices.
With mortgage rates around 6.34%, buyers also have more purchasing power. Consequently, more homeowners are likely to list properties on Nevada MLS. The 5% increase in new active home listings in Nevada has also brought back home shoppers.
So, whether you are looking for a condo in Las Vegas or a single-family primary home in Winchester, you will find your dream home in the coming months.
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Disclaimer: This article is for informational purposes only. It does not constitute an offer, solicitation of an offer, or any advice or recommendation. Houzeo doesn’t provide any legal or financial advice. The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Houzeo Corp., its affiliates, or its employees. However, the author does not make any representation or warranty, express or implied, as to the information’s accuracy or completeness, nor does the author recommend that the attached information serve as the basis of any investment decision.
Frequently Asked Questions about Nevada Real Estate Market
When will the housing market crash in Nevada?
Not for the next few years. Nevada's housing market will not crash in 2024. Despite low housing demand and modest home prices, Florida's market is afloat.
What are the real estate housing market 2024 predictions for Nevada?
2024 will be a stellar market for Nevadians. Here's our 2024 forecast for Nevada housing market are: (1) Home sellers will return to the market come Spring 2024. (2) Number of houses for sale will increase (3) Property prices in Nevada will increase marginally (4) Mortgage rates will stabilize in the latter half of 2024 (5) iBuyers will buy homes for lower than their fair market value. (6) Buyer agent commissions will be negotiable!
Are home prices dropping in Nevada?
Not yet! Currently the property prices in Nevada are increasing but at a slow pace of 5.8% YOY. However, you can still find the cheapest places to live in Nevada. You can find the value of your favorite homes on Houzeo's home value estimator
Is it a good time to buy a house in Nevada?
Yes! Currently, the homes for sale are at around 14K which is up by 9.8% YoY. Low home prices and low mortgage payments have made buying a home affordable. More buyers will return in the second half of 2024, so we'd recommend you buy a house now.
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