LAS VEGAS (KTNV) — A change is happening to the housing market here in Southern Nevada, where townhomes and condos are becoming a popular choice for homebuyers as interest rates remain high.
According to Las Vegas Realtors, demand is high for condos and townhomes—driving up the prices.
The average price hit an all-time high last month. I talked to one realtor about why this is happening.
Elliot Weller moved into a Summerlin West townhome about a year ago. He is happy he bought before interest rates went up. They are now at 7%.
I asked him if he thought it would have been different if he was hunting for a property now.
"I am extremely happy. I wouldn't look right now unless I had enough cash," Weller said.
Bob Hamrick was someone else we talked with about these trends.
Hamrick is the CEO of Coldwell Banker Premier Realty, and he says buyers are having to make changes.
"Obviously with interest rates increasing buyers are still trying to get as much home for the money...many are choosing to not purchase a single family residence because a condo or townhouse is less expensive."
After the pandemic, home prices dropped slightly. But, this past month, there was a change in the average price for a condo or townhome.
According to Las Vegas Realtors, the average price for a condo or townhome hit an all-time high in August of $287,000, up 8.3% from August of last year.
Meanwhile, the average home price in August was $447,435, down 0.6% from a year ago.
Hamrick says industry experts expect interest rates to come down.
"What will likely happen as interest rates come down is that property values will go up, and then we are going to find ourselves in a position where we wished we bought then."
Weller says he's just happy they got in when they did, looking at where the rates have landed today.
"I like to tell people it was the smart thing to do at the time, but it was just luck," Weller said.
Hamrick says he doesn't expect an interest rate drop to happen until next year.
