Much has been said about the housing supply shortage, and while there are many different ways to measure this, the industry is in agreement that the shortage in the market is real. The imbalance of supply relative to demand has contributed to higher home prices. Particularly, Nevada’s economic diversity efforts continue to fuel population growth, outpacing supply and pushing the median sales price for existing single-family residential homes up 9.6% in the past year.

The New Build Segment

When looking at the new build segment, things don’t look any better. The limited availability of land for development, higher finance, and production costs continue to drive prices higher.

Economic Uncertainties

Higher than expected inflation figures in the first quarter have tempered expectations for rate cuts, prompting officials to emphasize their readiness to hold rates steady for an extended period. Although the setback in inflation, despite robust economic momentum, poses a challenge, the prospect of rate cuts remains on the table, yet uncertainties loom larger than before. As we await the Fed’s decisions, it’s essential to remain vigilant. Economic uncertainties underscore the importance of patience and prudence in navigating the financial landscape. A lesson from Ancient China Echoes in the Federal Reserve’s Current Approach “do nothing, and everything will be done.”

Mortgage Rates and Sales

With mortgage rates up 0.53% compared to March 2024 and 0.84% from the same month last year, sales remain strong, up 11.39% compared to last month and 17.08% from a year ago. However, the number of active listings has remained relatively balanced so far this year, but it has decreased by 17.35% when compared to the same month last year. Currently, we have about two months of supply or about 33.33% less when compared to the same month last year. This might overheat the market as we prepare to enter the high season, especially when considering that the number of new listings entering the market today sell within 0-30 days.

Navigating the Market

Despite the current market conditions, working with a knowledgeable real estate professional can help buyers navigate these waters by strategically planning and timing their purchases to help take advantage of unique opportunities like coming soon or exclusive properties that enter the market or quick move-ins and promotional finance opportunities available from local builders, although we do not expect them to last for long.