The broader economy, and the financial markets in particular, don’t love uncertainty, as evidenced by recent sell-offs across international stock exchanges. However, in times like these, the real estate market can provide welcome stability, especially in a strong residential market like Las Vegas. This was reflected in last month’s market statistics, where inventory growth was matched by home price stability and impressive sales performance, suggesting ongoing solid market conditions.
As investors seek out ways to diversify their portfolios, there may be no better place to put their money than bricks and mortar. That’s good news for the Las Vegas real estate market and for sellers in the region who are looking for an opportunity to cash out some of their recent equity gains.
Here’s how the market performed in February, and what we can expect in the months ahead:
February 2025 Las Vegas Real Estate Market Snapshot
The past couple of years have seen tight inventory, which has dampened both buyer enthusiasm and market movements. However, February continued to show shifts in inventory, pricing and sales activity, indicating that a more balanced market is on the horizon — one which may spur both buyer and seller interest during the always-active spring market.
Median and Average Home Prices:
The median list price of single-family homes clocked in at $529,850, a modest 0.9 percent month-over-month increase but a 6 percent increase from February 2024.
Median and Average Condo Prices: For Las Vegas condos and townhomes, the median price of $289,000 reflected a slight decrease of 0.3 percent month-over-month, and a slight increase of 1.4 percent year-over-year.
Sales Volume and Inventory Levels for Homes & Condos:
A total of 1,781 single-family homes sold in February reflected a welcome 12.9 percent increase from January but a 6.1 percent dip year-over-year. Among condos and townhomes, the 515 units sold represented a whopping 24.7 percent increase from January but a decline of 2.8 percent year-over-year.
The big story, and the big numbers, are reflected in inventory increases, with the effective months of availability for single-family homes coming in at 2.9 months, an 11.2 percent decline from January but a 60.4 percent increase year-over-year. For condos and townhomes, the 3.9 months of availability reflected a 14.3 percent decline month-over-month but an astounding 79.7 percent increase year over year.
Speedy Closings Show Strong Buyer Activity
More than half of homes sold closed within 30 days, suggesting strong buyer activity for right-priced homes that are considered market-ready. However, increases noted in available listings without offers, especially the share of homes sitting on the market for more than 90 days, may indicate a shift in favor of buyers. It may also mean that sellers need to adjust pricing strategies to attract demand, especially with homes that have been sitting for several months.
For investors, finding deals continues to be a challenge, with distressed sales down near all-time lows. Short sales and foreclosures combined only accounted for 0.6 percent of all property sales, compared to 1.6 percent a year ago and 2.5 percent five years ago. At the same time, cash sales at 28 percent were down from 29.7 percent year-over-year and their 2013 peak of 59.5 percent.
What the Numbers Mean for Buyers and Sellers
For Buyers, increases in inventory translate into more choice and better negotiating leverage. It also means you may be able to take a little more time to find the right property and craft an offer that’s fair for both parties.
Watch for price adjustments due to increased inventory, especially if a home has been on the market for a while. However, you’ll need to move more quickly on competitively priced homes in great condition, since these still tend to move at a brisk pace.
Since home prices are still rising, expect to see strong equity growth in the long term. Go into your purchase with an idea of what improvements and upgrades add value, so that you can ensure you’re getting the most bang for your buck, both now and in the years ahead.
For Sellers, strategic pricing that’s competitive and realistic is essential to avoid extended Days on Market and subsequent pricing adjustments. Buyers who’ve been on the fence for months or years due to low inventory and high interest rates are savvy, engaged and educated, and they’ve got more to choose from in today’s market.
Consider staging, repairs and updates that enhance your home’s appeal and help it to stand out in an increasingly crowded spring marketplace. Make sure your home is show-ready at all times so that serious buyers can get in and see it at a time that’s convenient for them.
Understand that you may need to negotiate since buyers have more to choose from and more leverage. Talk to your real estate professional about what terms are flexible and where your bottom line is on price so that you can close a deal at your optimal price and on your preferred timeline.
Check back in monthly to monitor the market, including changes in inventory and buyer demand that may affect your negotiating strategy. Keep your eye on your goals and develop an idea of the best outcome, then create the circumstances that will help you attain it rather than hunkering down or turning a negotiation into an adversarial relationship.
Navigate The Las Vegas Real Estate Market With Leslie Hoke
Whether buying or selling a primary residence or vacation home or looking for an investment opportunity in one of the country’s fastest-growing destination markets, you need a market expert to help. Let Leslie Hoke help you navigate the Las Vegas residential market, providing game-changing experience and expertise to help you evaluate current conditions and plan your next move.
Get in touch today to find out what we can do to make your real estate goals a reality. Feel free to call: (702) 321-1763.
Helpful Links
Here are a few helpful links that may assist in your search for a Las Vegas home or condo:
