New Home Building Coming to a Stop? Las Vegas Real Estate Housing Update

Real Estate
In this Las Vegas real estate housing update we talk about how new home construction is dramatically slowing, almost coming to a stop. As new home builders sell off their existing inventory, they are building even less and almost no builders are purchasing land to build on. Unlike the last housing crash where builders kept on building even as no home purchasers were buying new homes.

In Las Vegas home purchases have dropped every month (except July to August) as interest rates have been rising. This has caused them to proactively slow down their building of new homes as interest rates have risen making it more expensive for them to build new homes and borrow the money to do it. It is possible in the future that there will be far less new homes under construction which means that the total supply of housing will potentially decline until interest rates start to decline.

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One good thing about the slowdown in construction of new homes is that it forces people into the resale home market, which helps avoid a market crash. Indeed we still have a historically low number of homes for sale nationwide, and even in Las Vegas we have less homes for sale now that the same time in 2019. It is likely in 2023 that the supply of homes on the market will decrease and home prices will stabilize as soon as interest rates go back below 5%.

Todd and Oana Miller are Las Vegas real estate agents and specialize in listing homes for sale in Las Vegas Nevada. If you want to reach out you can email us or call below

Oana Miller
702-285-4207
broker@nvrs.com

Todd Miller
702-218-2819
todd@nvrs.com

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