New Wells Fargo Report Anticipates 2025 Being a Difficult Year for Residential Real Estate

LAS VEGAS, NV – According to a new report released this week by multinational financial services company Wells Fargo, 2025 will be a difficult year for the residential real estate market in the United States, and Las Vegas will not be exempt from experiencing this in the coming months.

Vice President and Economist for Wells Fargo, Jackie Benson, noted that the currently high level of interest rates on home mortgage loans – which are at 7 percent at the moment – will most likely discourage prospective buyers from acquiring properties and sellers from listing them until rates hopefully go down.

Mortgage rates probably aren’t going to come down too much,” she said. “And we think the Feds are going to end up at 3.75 percent for interest rates, so that’s elevated far above where we were before the pandemic when rates were zero percent and because of that economywide interest rates are expected to remain elevated, so we don’t expect mortgage rates to get below 6 percent frankly.”

Wells Fargo, in their report, included data specific to the Las Vegas Valley that indicates that while the rate at which home values are appreciating in the region has been slowing in recent months, they are nonetheless increasing faster than what is considered the average nationally.

For example, while the U.S. average home value increase year-over-year is currently 3.4 percent, in Las Vegas that rate is nearly 5 percent, as per consumer and business information and analytics firm CoreLogic.

Slowed sales in Southern Nevada have resulted in an increase in inventory, but housing supply is nonetheless lower than ideal due to the currently high level of mortgage rates; Las Vegas metropolitan area active listings, while 42 percent higher than they were year-over-year, are 17 percent lower than they were prior to the COVID-19 pandemic.

However, some experts are anticipating that President Trump – who is viewed as business-friendly and has expressed a desire to address the housing crisis in the country – could contribute to the situation improving to some degree in the near future.

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.