LAS VEGAS (KTNV) — With the New Year underway, KTNV takes a closer look at what's in store for the Las Vegas housing market.
Home experts say we may once again see a housing boom in 2024. But our Abel Garcia found out Tuesday that the valley's limited inventory may create some challenges.
"We just felt like our dollar went a long way here," said Jon and Virginia Wilson, who rang in the New Year in their new home.
They recently moved here from Boise, Idaho.
"When we found that home prices here were pretty reasonable," the couple said. "We decided to make the jump."
Jon says in Boise, the home they purchased in Henderson would be priced in the high $600s. Their cost here is less than $500,000.
Realtor Jennifer Graff says going into 2024, her phone is ringing off the hook with new home buyers. Many are from out of state, like the Wilsons.
"With rates coming down and a bit of an ease in affordability, it's a great time to get off the fence and consider purchasing the first quarter of 2024 versus waiting for the busy spring buying season," Graff said.
Loan officer Bernard Barbilla says this drop in interest rates will fuel a significant rise in home sales.
"Towards the end of 2023, we saw interest rates hit nearly 8 percent. Now they are closer to 6 percent," Garcia said. "How much of a difference does that make in the monthly payment?"
"It can be as significant as a 2 percent drop," Barbilla said. "With that in mind, that's around $500 to $600 dollars depending on what the price of the home is."
Of course, there is a twist expected this year. Graff says our 3-month supply of inventory will make the house-hunting scene like a game of musical chairs.
"If inventory stays really low, with rates going down, and a huge influx again of people from California and other more expensive markets than Las Vegas, we could be in for a very strong competitive market for buyers looking to buy," she said.
The Wilsons say when they bought their new home, interest rates were still high. They believe the recent drop created a window of opportunity for other buyers.
"I don't think there is a better time than now," they said.
Barbilla says if you are planning to purchase a home this New Year, one of the first things you need to do is talk to a loan officer to see if purchasing a home is attainable for you.
