LAS VEGAS (KTNV) — From high mortgage rates to high home prices across our valley, several experts in the real estate field told Channel 13 about an issue being felt at home — our stalled housing market.
Many buyers have been sitting it out on the sidelines, but change is coming as mortgage rates are dropping.
Since the pandemic, rates in Southern Nevada have increased rapidly — at several points even reaching 8% — but now mortgage rates on a 30-year fixed loan are hovering around 6.25% to 6.5%.
These are the lowest rates since mid-December.
West Coast Mortgage Group Vice President Andrew Leavitt told me a 1% drop in rates could save a homeowner hundreds in monthly payments. He says that drop is bringing back competition among buyers.
“When it was back in the 7s, no multiple offers did not exist at any price point, really in the first week and a half, we’ve started to see the multiple offers come back into the equation," Leavitt said.
“It definitely gives me hope with the interest rates dropping," Las Vegas homebuyer Mia Browning said.
She is searching for her dream home.
“I’d like something that is going to be my forever home," Browning said.
She purchased her property before the massive increase in mortgage rates in North Las Vegas in 2021. At that time, rates were around 4-5%. During that time, competition was high.
“You were putting in offers, site unseen, there could be 10 offers," Browning said. “And I bought, not my dream home not my forever home, but what I could afford at the time.”
She says her search was delayed due to high rates.
“Obviously as the interest rates have gotten higher, I’ve felt almost stuck," Browning said.
But she is now back on the search, however, the stalling effects of high rates are still being felt in our community.
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“When you see rates below 7%, you’ll see more activity. When they get north of 7% you see things slow down," said Las Vegas Realtor George Kypreos.
WhileJanuary's Las Vegas REALTORS Report shows valley home sales tracking close to last year, it also reveals 5,215 homes were listed but had no offer — that's an increase of 46.9% over last year at the same time.
Kypreos did mention high mortgage rates at that time is one of the reasons for so many homes without an offer, but he says high starting prices, location and attempting to sell during a traditionally slow home selling month could play a part.
He says the market is fairly balanced in our valley right now.
"Pretty equal playing field between buyers and sellers...ample amount of inventory but not a lot that sellers feel desperate to give the house away," Kypreos said.
Channel 13 has found several home builders in our valley have been slashing prices and using several low mortgage rate incentives in order to attract more homebuyers.
“I think when rates were at their higher points, people needed those buy downs more," Kypreos said.
He tells me he expects that to change soon if the mortgage rates continue to drop, not needing the incentives as much.
Leavitt tells me he expects mortgage rates will continue to drop, saying we could possibly see rates around 5% in a couple of weeks.
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