The Las Vegas real estate market has seen some slight cooling in prices during the summer and heading into the fall of 2023. However, despite these small declines, the overall outlook remains positive. Las Vegas continues to be one of the strongest real estate markets in the country thanks to ongoing high demand and favorable long-term forecasts.

Median home prices have dipped marginally since mid-year peaks, but sales activity continues at a healthy clip. Housing inventory remains low compared to historical norms, and the luxury segment continues to shine, demonstrating the enduring attractiveness of Las Vegas for high-end buyers.

While prices may continue to see slight downward corrections in the coming months, the long-term projections still point to steady growth and strength moving forward, and Las Vegas remains one of the premier destinations for home buyers even as markets cool in many other parts of America.

Recent Las Vegas Real Estate Pricing Trends

Median Las Vegas home prices have seen a small decline in recent months, though the drops have been modest. Specifically, the median price decreased 0.6% from $450,000 in July to $447,435 in August 2023. However, despite the minor monthly decline, prices remain slightly higher than last year. The August 2023 median price was still 0.3% above the $450,000 median price from August 2022.

This indicates that the Las Vegas housing market is stabilizing and leveling out rather than experiencing a major cooldown. And barring unforeseen adverse events (such as a deep economic recession or worse), a dramatic crash is highly unlikely given the still-healthy demand and strong underlying fundamentals.

For buyers, recent pricing trends point to a market that is becoming more balanced and easier to buy into compared to a couple of years ago. Sellers maintain significant leverage, however, as properties are still selling fairly quickly and at or near asking prices. This presents opportunities on both sides as the frenzied extremes of the pandemic market have eased.

Las Vegas Home Sales Activity

In terms of actual home sales, Las Vegas continues to see strong activity even as prices stabilize. The number of homes sold dipped 1.6% from 2,041 in July 2023 to 2,009 in August. However, sales were only down 0.3% from August 2022 to August 2023. This mild drop aligns with the pricing trends, providing another indication of a balanced market rather than a steep decline. Las Vegas continues to see thousands of homes trade hands each month.

Further demonstrating the strength of sales activity is the day-on-market statistics. In both July and August 2023, 68-70% of homes sold in 30 days or less. This swift sales pace shows that demand remains high, and buyers are eager to capitalize when the right home hits the market.

While sales numbers may fluctuate month-to-month, Las Vegas remains one of the fastest-moving housing markets in the nation. Homes that are priced appropriately and in good condition sell very quickly. And as we talked about earlier, this bodes well for both buyers and sellers as we head into the late 2023 and 2024 markets.

Las Vegas Housing Supply and Inventory Remains Tight

On the supply side, Las Vegas continues to experience a shortage of available homes for sale even as inventory starts to creep upward. Active listings increased from 1.7 months of inventory in July 2023 to 1.9 months in August. However, inventory was still down a substantial 51% from August 2022, when it stood at about a four-month supply.

Despite the slight month-over-month rise, a less than two-month supply is still quite low historically for Las Vegas. This, ironically, could be driven by higher interest rates. Many analysts believe that rising rates are keeping would-be sellers in their current homes because they are locked in at the historically low rates that were available during the pandemic, and it would be costly for them to move right now and pay a higher interest rate. 

Whatever the reasons, the current tight inventory applies upward pressure on prices, which of course is good for sellers. Moving forward, the hope for buyers is that interest rates will come down some, which might bring some more homes onto the market and loosen up inventory while also making their purchase more affordable. A surge in new housing developments should also fuel housing supply in the coming months and help balance out inventory. 

Las Vegas Luxury Market Remains Strong

While the broader Las Vegas market stabilizes, the luxury home segment continues to thrive. In August 2023, the number of homes sold for $1 million or more increased 19% compared to July, from 126 to 145. The median sales price for luxury homes did dip slightly from $1.37 million in July to $1.365 million in August. However, the $1.3 million-plus price point demonstrates strength at the top of the market.

Much of the enduring demand for luxury properties can be attributed to the influx of professional sports teams, which has elevated Las Vegas’ status and attracted wealthy buyers. The Raiders, Golden Knights, and Aces, along with the imminent arrival of the Oakland A’s, have brought athletes, executives, and overall glamor to the valley.

The sports teams have spurred the construction of luxury homes catered specifically to players, coaches, and team owners. But the impact goes beyond that. The major league atmosphere also entices celebrities and wealthy business owners who want easy access to games along with the amenities of Las Vegas living.

As the professional sports economy energizes the city, continued growth in the high-end segment is expected. This, again, creates opportunities for both buyers and sellers. Luxury home sellers can expect to receive a good price for their properties, and buyers are likely to realize a healthy long-term profit on their investment in a high-end Las Vegas property.

Positive Long-Term Outlook for Las Vegas Real Estate

Despite the recent modest slowing of price growth, most signs point to ongoing strength in the Las Vegas housing market over the coming months and years. Several positive market factors support this projection. Las Vegas is still attracting droves of migrants from California, particularly in the millennial demographic. These new residents are seeking a place that has fewer taxes, a lower cost of living, and a better overall quality of life. 

Nevada’s business-friendly tax structure draws more business to the area as well, which creates additional jobs. Recent high-profile business investments like the Raiders stadium and the planned A’s ballpark generate more construction work and the macro–Las Vegas employment market also remains strong. 

Bottom line: while the local housing market cools slightly from its overheated pandemic peak, the long-term outlook remains quite positive. Steady population growth, a solid job market, and major investments are all indicators of a brighter future for Las Vegas real estate. 

Contact the Knoch Group for Additional Insights on the Las Vegas Real Estate Market

Las Vegas remains a popular relocation destination, and this is likely to be the case for the foreseeable future. With a balanced real estate market and a strong long-term outlook, there are opportunities for both buyers and sellers to obtain a favorable deal. This is far more likely to occur with the help of a local real estate expert, however, and that’s where the Knoch Group comes in.

Our founder, Ryan Knoch, is one of the top luxury real estate brokers in Southern Nevada, and he can provide you with valuable insights into both the high-end housing market and the area’s overall economic climate. Contact us today to speak with Ryan and take the first step toward accomplishing your real estate goals.