How Rampant Inflation Affects Our Market
Inflation and interest rates are rapidly changing our market.
Our real estate market is changing. The growth of rampant inflation is being accelerated by lingering supply chain issues, China’s new lockdown, the war in Ukraine, and the federal government's stimuli over the past few years. The response is that we have increased interest rates. We’ve moved from the low 3% range to the low 5% range in a few short months, and that seems to have taken the steam out of the Las Vegas real estate market.
However, based on the data, we think that median sales prices will continue to climb for at least a few more months. The median price of a single-family home in Las Vegas may increase as high as $485,000 by the end of June. The current median price is just $465,000.
The current market is confusing and rapidly changing, and there’s a lot at risk.
This shows just how strong the demand is in this market. Some of that demand may be part of the rush to buy before rates rise even more. However, with the added costs of food and gas, we might not see much more home price appreciation. Things are starting to grow quiet when we look at the leading indicators.
What does this mean for you? With prices beginning to level off, we may see some much-needed relief for homebuyers. More listings may come on the market soon as sellers who worry about a price decrease try to capitalize on their equity.
Finally, who you consult with and hire matters more today than it has for quite a while. The current market is confusing and rapidly changing, and there’s a lot at risk. For many, it may be time to stay put, while for others, now’s the best time to move. That’s what we’re here to help you decide.
If you have any questions or want us to help review your situation, call or email us. We would love to speak with you.