The Las Vegas Valley has experienced a notable surge in residential real estate inventory, with a significant 44.5 percent increase year-over-year, as reported by Zillow. This trend reflects a broader national pattern but is more pronounced in Las Vegas. The rise in inventory is driven by an influx of new listings, outpacing the rate at which buyers are purchasing homes. Despite the increase, the current inventory is still about 20 percent lower than pre-pandemic levels.
Nationally, inventory has risen by 19 percent from March 2023 to March 2024, with the total number of homes for sale reaching 1.15 million, marking the highest level since March 2020. Home values have seen a modest increase of 0.2 percent from February, and 3.3 percent from the previous year, with the average home price now at $433,664.
In Las Vegas, 27.1 percent of home listings have seen price reductions, up from 19.8 percent the previous year. New listings have increased by 17.9 percent compared to last year. The city’s rising inventory and prices are part of a broader trend observed in 41 of the 50 largest metro areas in the U.S., with only a few metros experiencing a decline in home values.
Affordability challenges, especially for first-time buyers, and stock market volatility are impacting the buyer pool, while sellers benefit from home equity. This dynamic is contributing to the growing and normalizing inventory levels. Historical data suggests that homes in Las Vegas have been on the market longer than the national average, and the area has been underbuilding homes for about 15 years compared to pre-Great Recession norms.