67°F
weather icon Clear

‘Market is definitely turning;’ Pahrump home prices fall again

Southern Nevada home prices have cooled as buyers pulled further back in July. The once-sizzling market is becoming a more distant memory. 

The median sales price of previously owned single-family homes — the bulk of the market — was $465,000 in July, down 3.1 percent, or $15,000, from June, according to a new report from trade association Las Vegas Realtors.

Prices were still up 14.8 percent, or $60,000, from a year ago. But prices have now fallen month to month for the second consecutive time after not dropping for more than two years.

In Pahrump, the median price for a home sold in July was $369,715, according to Rocket’s real estate report. That’s up more than $70,000 from a year ago but also down from previous months that saw peaks near $400,000.

Forty-eight homes sold in Pahrump last month, which is down more than 18 percent from the previous month.

All told, the sliding prices underscore a broader cooldown in Southern Nevada housing, marked by fewer sales, fast-rising inventory, price cuts and more negotiating power for buyers.

“We’re definitely seeing a shift in the housing market,” LVR President Brandon Roberts said. “We haven’t seen prices slow down like this in several years.”

In July, more than 45 percent of Pahrump homes were sold below the asking price. Homes sat on the market about 20 days longer than they did the month prior.

Financial roadblocks

Buyers picked up 2,066 single-family homes in July, down 22.6 percent from June and 38.4 percent from July of last year, the association reported.

A total of 7,331 houses were on the market without offers at the end of July, up 27.6 percent from June and 143.8 percent from July 2021, according to LVR, which reports data from its listing service.

Availability hasn’t been this high since summer 2019, Roberts said in the release.

“This is encouraging news for people looking to buy a home — although rising interest rates and today’s prices still present challenges for many potential buyers,” he added.

Buyers are pulling back in Southern Nevada and around the U.S. following a year of huge price gains and as higher mortgage rates wipe out the cheap money that fueled America’s unexpected housing boom after the pandemic hit.

The average rate on a 30-year home loan last month was 5.41 percent, down from 5.52 percent in June but up from 2.87 percent in July 2021, according to mortgage buyer Freddie Mac.

Coldwell Banker Premier Realty agent Tricia Kiefer said Las Vegas’ market overall still seems “pretty good.” But she noted inventory is growing and there are a lot more price reductions.

Kiefer also said buyers are negotiating more.

“A year ago, you had to give the seller everything they wanted,” she said.

‘Definitely turning’

Fueled by record-low mortgage rates that let buyers stretch their budgets, Southern Nevada’s housing market reached its most frenzied pace in years in 2021. Sales prices hit new all-time highs practically every month, buyers flooded homes with offers, and homebuilders put buyers on waiting lists and in some cases drew names to determine who could purchase a place.

Lately, however, the Federal Reserve has been raising interest rates in an effort to cool inflation, and once-frenzied homebuying has slowed amid higher borrowing costs.

In some ways, Las Vegas has been hitting the brakes harder than other metro areas.

Just over 27 percent of pending sales in the Las Vegas area fell through in June, the highest cancellation rate in the nation, according to real estate brokerage Redfin, which reported that home sales nationally were nixed at the highest rate since the onset of the pandemic.

Also, some 20 percent of Southern Nevada listings had a price cut in June, the fourth-highest share in the U.S., listing site Zillow reported.

On the construction side, meanwhile, Southern Nevada builders logged 713 net sales — new purchase contracts minus cancellations — in June, down almost 24 percent from the same month last year, according to figures from Las Vegas-based Home Builders Research.

The sales tally in June was the lowest of the year and marked the third consecutive monthly drop, the firm reported.

Simply Vegas agent Jillian Batchelor said the market was still heated early this year but started to turn as interest rates climbed higher.

Just three or four months ago, buyers were paying $10,000 over the asking price, but now they’re offering at or below the listing price and seeking concessions, said Batchelor, who also pointed to the surge of price cuts in Southern Nevada.

“The market is definitely turning,” she said.

Contact Eli Segall at esegall@reviewjournal.com or 702-383-0342. Follow @eli_segall on Twitter.

Brent Schanding contributed to this report.

THE LATEST
Historic Saline Valley salt tram tower pulled down

DEATH VALLEY, Calif. – The National Park Service is seeking information about recent damage to a historic salt tram tower in Saline Valley. It appears the 113-year-old tower was pulled over while a person used a winch to extract their vehicle out of deep mud. The damage happened sometime between April 1 and April 24.

 
Need a Real ID? Time is running out to get one in Nevada

To meet federal requirements, Real IDs will be needed for anyone looking to use their driver’s license to get through security at airports for domestic flights nationwide.

Circus coming to Pahrump

The Kiwanis Club of Pahrump Valley is sponsoring the Hugo, Oklahoma-based Culpepper and Merriweather Great Combined Circus which is coming to Pahrump at Petrack Park on Saturday, May 4 and Sunday, May 5. There will be two 90-minute shows each day at 2 p.m. and 4:30 p.m., with a free tent-raising and behind-the-scenes tour starting at 9:30 a.m. on Saturday.

Devils Hole pupfish population at 25-year high

The spring count of the Devils Hole pupfish, one of the world’s rarest fishes, showed that the population is at its highest since the spring count taken in 1999.

Sportsman’s Quest: You always remember the firsts

While looking through my old picture albums I noticed many of the pictures, and the ones I enjoy most, are of firsts – pictures of my first deer, first bear, first sheep, and first salmon. Perhaps this shouldn’t be surprising, as our memories of first events are often most vivid, and we have a special feeling for other firsts as well.

Meet the new manager for the Nye County Animal Shelter

A little more than a year and a half ago, the new 79-dog capacity no-kill Nye County Animal Shelter opened and promptly received a baptism by fire a few days later when more than 300 abused and neglected Caucasian shepherds were seized, overwhelming the facility’s capacities and resources, and capturing national headlines. These days, the shelter has returned to its normal intended function but with new leadership in place.

Beatty plans recreational facilities on 76 acres

BEATTY — The Beatty General Improvement District has big plans for 76 acres of land south of the high school and east of the town cemetery.

 
Do Nevadans support smoke-free casinos? New poll gives insight

A new poll looks at whether voters would support a potential law that made all workplaces in Nevada, including casinos, completely smoke free while indoors. Unions also weigh in.