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Las Vegas Housing Market Cools: Prices Drop, Sales Plummet

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  //house-home.news-articles.net/content/2026/01/0 .. sing-market-cools-prices-drop-sales-plummet.html
  Published in House and Home on Tuesday, January 6th 2026 at 12:43 GMT by FOX5 Las Vegas

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Las Vegas Housing Market Continues to Cool: Prices Drop, Sales Plummet to Historic Lows

The once-booming Las Vegas housing market is experiencing a significant downturn, with prices falling and sales hitting their lowest levels in nearly two decades. A new report by Fox 5 Vegas, based on data from the Greater Las Vegas Association of Realtors (GLVAR), paints a picture of a market undergoing a substantial correction after years of unprecedented growth fueled by migration and low interest rates. The situation is impacting homeowners, potential buyers, and the broader local economy.

Price Declines Accelerate: The most striking aspect of the current landscape is the continued decline in home prices. According to GLVAR data, the median price for a Las Vegas home fell 4.8% in December 2023 compared to December 2022, marking the tenth consecutive month of year-over-year price decreases. The median price now sits at $415,000 – significantly lower than the peak reached in May 2022 when it topped $500,000. This represents a roughly 17% decrease from that high point. While prices haven’t yet returned to pre-pandemic levels, the downward trend is undeniable and reflects a shift in buyer power. The report highlights that while some areas have seen more dramatic drops than others, virtually all segments of the market are experiencing price pressure.

Sales Plunge to 2007 Levels: The drop in prices isn’t happening in isolation. Sales volume has also plummeted dramatically. GLVAR reported just 1,683 sales closed in December 2023 – a staggering 54.9% decrease compared to the same period in 2022 and the lowest level since January 2007. This echoes a broader trend throughout 2023; overall sales volume for the year was down nearly 46% from 2022, demonstrating a severe contraction in market activity. The report emphasizes that this isn’t simply about fewer homes being listed – inventory is actually increasing (see below), indicating a lack of buyer demand rather than scarcity of properties.

Increased Inventory Signals a Buyer's Market: One crucial factor contributing to the price declines and sales slowdown is the rise in housing inventory. While inventory remained historically low for much of the pandemic era, it has been steadily increasing throughout 2023. In December, there were 8,745 active listings – up nearly 69% from a year ago. This represents a significant shift towards a buyer’s market, where buyers have more choices and greater negotiating power. The increased inventory allows potential buyers to take their time, shop around for better deals, and potentially renegotiate offers.

High Interest Rates are the Primary Driver: The primary culprit behind this cooling is undeniably the surge in mortgage interest rates. After reaching historic lows during the pandemic, rates began climbing rapidly in 2022 and have remained elevated throughout 2023. As of early January 2024, average 30-year fixed mortgage rates are hovering around 7%, significantly impacting affordability for potential homebuyers. This higher cost of borrowing has priced many individuals out of the market or forced them to reconsider their purchasing power. The GLVAR report directly links the interest rate hikes to the decline in sales and price adjustments. (See also: [ https://www.glvar.org/news-and-research/market-statistics/ ] for more GLVAR data).

Impact on Homeowners & Future Outlook: The situation presents challenges for homeowners, particularly those who purchased properties at the peak of the market. While a significant loss in equity is concerning, most homeowners still have considerable underwater mortgages, meaning they owe more than their homes are currently worth. However, experts suggest that a widespread wave of foreclosures isn’t anticipated, as many homeowners have substantial equity and can afford to wait out the downturn.

Looking ahead, the future of the Las Vegas housing market remains uncertain. While some analysts predict prices will stabilize in 2024, a significant rebound is unlikely until interest rates begin to decline. The Federal Reserve’s monetary policy decisions will be crucial in determining when and how quickly mortgage rates might ease. The Fox 5 report cites GLVAR President Brandon Roberts who suggests that the market could see some improvement later in 2024 if interest rates come down, but a full recovery remains years away. Roberts also emphasized the importance of realistic pricing by sellers to facilitate transactions in the current environment.

Beyond Residential: The slowdown in the housing market is expected to have ripple effects throughout the Las Vegas economy. Construction jobs are at risk, and related industries like furniture sales and home improvement services could experience a downturn. While Las Vegas’s broader economic resilience – driven by tourism and entertainment – may cushion some of the impact, the cooling housing market remains a significant concern for local officials and residents alike.

This summary aims to capture the key points from the Fox 5 Vegas report and provide context around the current state of the Las Vegas housing market. It's important to note that real estate markets are complex and subject to change; this information reflects conditions as reported in early January 2024.