LAS VEGAS (KTNV) — Fear of how reciprocal tariffs might impact our valley is sweeping through the real estate market right now.
Several housing experts tell me, many would-be homebuyers are preferring to stay on the sidelines, keeping a watchful eye on what's developing.
VIDEO: Housing experts tell Channel 13 buyers have negotiating power right now, despite financial concerns
“I think you’d be foolish to not have it in the back of your head and at least a part of the equation," said Michael McRoy who is planning to move to Las Vegas.
McRoy, his wife Vanessa and their dog Tokyo are currently living in Connecticut. They plan to move to Las Vegas as early as this month.
“So we’ve been regular visitors of Vegas now for 10 years, we’ve been going every year since we turned 21," said McRoy. “And eventually you know it just seemed like a place that made a lot of sense to move to.”
These are uncertain financial times though. 10% baseline tariffswent into place Saturday for all imports from many countries, and higher tariffs are set to go into place for 57 trade partners Wednesday.
Many are concerned with just how much each industry will be impacted by these tariffs, but the impact is still unknown.
So, I was curious to see how many people have Michael's mindset of moving forward with purchasing during this time, or how many instead might be pressing pause on big purchases and waiting on the sidelines.
I spoke with five realtors and a mortgage group in our valley to find out.
All of them tell me they are now seeing many clients fearful to buy a home.
“What’s happening right now is kind of scary for a lot of people," said Jennifer Graff, a realtor at Douglass Elliman Real Estate & Founder of The New Home Experts Las Vegas.
“Should I wait? Should I not," said West Coast Mortgage Group Vice President Andrew Leavitt.
Graff and Leavitt say right now is the time to buy, saying with more homes on the market and fewer buyers, you can get a deal.
I asked Leavitt if that means buyers have more negotiating power right now.
"Right, to ask for credits to ask for lower sales price, you have that ability right now more than you’ve have in the last 6 months so take advantage of it," said Leavitt.
The experts tell me if you're waiting for a significant price drop, it may not be on the horizon.
“It’s hard to believe but we’re still tight on inventory historically and we’re just not going to see those tremendous drops in prices," said Graff.
Graff and Leavitt tell me even if the price goes down slightly or mortgage rates drop, the deals may not be as good as you think.
They say that will incentivize more buyers to enter the market, meaning negotiating power will diminish.
As for fears of a recession, Leavitt says what's happening to the U.S. economy today is not the same as in 2008 when foreclosures were everywhere.
"In 2007, there was just short of 3 million foreclosures, in 2008 there was just over 3 million foreclosures. In 2007, the reduction in mortgages was just short of 6 million, the point is almost half of them were foreclosed on. If we look at current stats nowadays, in 2024 there was a few hundred thousand foreclosures, yet there was almost 6 million loans originated," said Leavitt. "Until you have that same scenario happen again, you won’t see another housing crisis happen again," said Leavitt.
Leavitt says we're not close to the same level, so the same result should not be expected.
All the experts tell me they just hope more people will take their advice and not be scared away from purchasing right now.
