Las Vegas led the nation’s major metro areas with the largest number of homes for sale in July, according to new data from the Rocket Companies (NYSE: RKT) division Redfin.
Last month, the total number of homes for sale in Las Vegas recorded a 31% year-over-year spike, which is approximately triple the national increase. July capped 12 straight months of 20%-plus inventory increases for Las Vegas, where year-over-year pending home sales fell 8.6% and closed sales fell 8.5%. Home sales in Las Vegas have been in a year-over-year decline since spring, with the typical home requiring 55 days to go under contract, 16 days longer than one year earlier.
Redfin attributed this situation to three factors: only 20% of Las Vegas listings are affordable to a family earning the local median income, the median monthly asking rent of $1,586 is less than the $2,472 typical monthly mortgage payment, and the local economy is being impacted by a decline in tourism – particular a significant drop-off in Canadian visitors in the wake of Trump tariff policies aimed at their country.
But on the flip side, rising supply and falling homebuying demand has started to push down sale prices. The typical Las Vegas home sold for $445,000 last month, down 1% from July 2024 for the first decline since September 2023.
“Las Vegas is feeling the effects of affordability pressures and elevated mortgage rates more acutely than many other markets, partly because the city’s economy is dependent on a slowing tourism industry,” said Chen Zhao, Redfin’s head of economics research. “The resulting pileup of supply paired with slow demand is a tough pill for sellers to swallow, but it’s good news for buyers. With so many homes on the market—and so many sitting for so long—buyers can take their time choosing from a plethora of options, and they may be able to negotiate prices down. And now that mortgage rates have dropped near their lowest level in 10 months, Las Vegas buyers may be able to snag a meaningfully lower monthly payment.”
