LAS VEGAS (KTNV) — The dream of owning a home is becoming increasingly out of reach for many in southern Nevada.
With the current median price for a single-family home sitting at $460,000 as well as current interest rates and prices, I went to North Las Vegas to find out how this is affecting buyers like Alejandra Caldera.
She tells me her monthly mortgage payment nearly doubled from her first home purchase in 2019 to her latest purchase.
"The jump was quite drastic. In 2019, I bought the home and it's about $1,700, roughly. When we got out second home, we closed not that long ago, we are at almost $3,000," she explained.
"How challenging is it right now to afford a home right now," I asked her.
"It is crazy just to see in a couple of years, just the huge price increase and the demand, people paying $10,000, $15,000, $20,000 over asking price because there is such a limited supply," Caldera said.
According to Las Vegas Realtors, the median price of single-family homes sold in southern Nevada during February hit $460,000, which is up 8.2% from $424,995 in February 2023.
"How did we get to this point," I asked realtor Alex Vazquez.
"Two things. It is really the inventory and also the massive amount of people that are moving into Las Vegas, primarily the Californians."
Vazquez added that inventory has hit an all-time low, which is driving the prices of existing properties up. He said current interest rates and the surge in the valley's median home prices is leaving buyers with noticeably higher monthly payments.
"Our lenders have been saying that it is $700 in payment for every $100,000 borrowed," Vazquez said. "So if we do the math, we are looking at $700 x 4.6 for the $460,000 home, you are looking on average at $3,220 for that home."
For buyers like Caldera, the process is "a bit frustrating and discouraging and makes you question am I going to actually be a homeowner". However, she said potential buyers should also consider the flip side: being shut out of the market completely.
She tells me that with homes gaining equity quickly, she wanted in on the action, even if it meant doubling her mortgage payment.
"Looking at the low to mid-$300ks versus now, they are $150,000 over."
According to Vazquez, the best thing buyers can do is try to negotiate credit from the seller to help buy down the interest rate. He adds that interest rates are expected to go down by this fall.
