Las Vegas Anticipated to Become “Buyer’s Market” in 2024, Real Estate Experts Say
LAS VEGAS, NV – With the last bits of COVID-19-era inflation hopefully evaporating next year, Las Vegas real estate experts are expecting current record-high home mortgage interest rates to drop slightly in 2024, slowly transforming Southern Nevada into a “buyers’ market” after several years of the reverse being the case.
However, those same experts are shooting down hopes that interest rates will eventually return to the extremely affordable levels they were at during the start of the pandemic, saying that no matter how much they do go down, elevated rates are expected to be the new norm going forward.
After the Federal Reserve raised interest rates numerous times in order to combat the 40-year high inflation gripping the nation, all eyes are on the agency after their announcement they intend to finally cut interest rates three times in 2024.
Las Vegas Realtors President Lee Barrett said he expects the overnight federal funds rate to indeed decrease next year, but does not anticipate they will eventually get back December 2022’s 4.1 percent; the current average rate for a 30-year fixed-rate mortgage is 7.2 percent.
This is going to be the new norm, higher interest rates and higher mortgage rates,” Barrett said. “They may drop, for the election a little bit, but I think 6.5 or 7 percent is where they are going to range next year.”
That being said, many real estate experts are predicting that 2024 will potentially see the Las Vegas Valley have its worst year for sales since 2008, with some saying it is a genuine mystery where the industry will head next year. However, with inflation improving and mortgage rates expected to come down a bit – leading to many who were holding out on listing their homes due to higher mortgage costs to finally do so – experts anticipate that the industry will shift towards a buyer’s market.
But that is not a certainty, experts say, as Las Vegas has a low inventory of properties currently available, and despite dropping sales figures, home sellers have for the most part been steadfastly refusing to cut their asking prices. Indeed, prices are only expected to drop 1 percent in the second and third quarters of 2024, creating what is known as a “locking” phenomenon in the Southern Nevada market.
Indeed, where the Las Vegas real estate market will go in 2024 is anybody’s guess at this point; the only thing that appears to be sure is that nothing is for sure.
Shelter Realty is a Real Estate and Property Management Company specializing in the areas of Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.