Las Vegas Housing Market Shows Signs of Cooling as Prices Decline and Sales Slow
New figures from Las Vegas Realtors indicate mounting pressure on the city's property market, with home prices slipping, fewer transactions completed, and a growing inventory of unsold properties. The data for January reveals a notable downturn, raising concerns about the economic outlook for the region.
Price Declines Across Property Types
The typical house price in Las Vegas fell to $470,000 in January, marking a 3.1 percent decrease compared to the same period last year. Condominiums and townhomes also experienced declines, with the median sale price dropping to $283,750, a 3.2 percent reduction from a year ago and significantly below the October 2024 peak of $315,000.
Sales Volume and Inventory Trends
Sales activity has weakened considerably, with only 1,825 homes, condos, and townhomes changing hands in January. This represents an 8.4 percent decline from the previous year. Concurrently, unsold properties are accumulating, with nearly 6,200 houses on the market receiving no offers in January, a 19 percent increase year-over-year. The number of condos and townhomes awaiting buyers surged by 25 percent to 2,377 units.
LVR President George Kypreos commented, 'This month's report shows buyers have more choices and prices are stabilizing - but the overall market slowdown is a warning sign for the city.'
Broader Economic Context and Tourism Impact
The cooling property market coincides with challenges in Las Vegas's tourism sector, which has faced a significant downturn. Visitor numbers in 2025 fell by 7.4 percent compared to the previous year, with December alone experiencing a steep 9.2 percent decline. Soaring prices at hotels and restaurants have contributed to this drop, exacerbating economic pressures.
National Housing Market Outlook
Analysts at JP Morgan Global Research project that national home prices will remain stagnant in 2026, with any modest increases in demand likely offset by rising supply. While US home sales showed some stability at the end of 2025 after a weak year, any recovery in 2026 is expected to be gradual. Recent policy changes, including two new housing reforms announced by the Trump administration, are anticipated to have minimal impact on the market.
Market Dynamics and Indicators
The slower sales pace has extended the time properties remain on the market. At the current rate, it would take nearly five months to sell all listed properties, up from just over three and a half months a year ago. Additionally, fewer than two-thirds of properties are selling within 60 days, a decrease from last year.
Cash buyers, once a dominant force, now constitute only 26 percent of sales. Forced or distressed sales remain rare, accounting for less than 1 percent of transactions. The total dollar value of home sales fell by 5.3 percent compared to January last year, although condo and townhome sales increased by 14.6 percent, suggesting some buyers may be opting for more affordable options.
Rental Market and Affordability Concerns
On the rental front, prices in Las Vegas have also begun to ease, with some areas of the Las Vegas Valley seeing rents fall by nearly 15 percent over the past year. Realtor David Brownell noted, 'Rent prices have definitely softened over the last 12 months, and that's been helpful for the overall community in Las Vegas.' He added that while home sale prices have slowed and declined, they remain high relative to local incomes, indicating ongoing affordability challenges.
Overall, these figures depict a housing market that is clearly cooling, reversing some of the rapid gains and record-breaking sales observed earlier in the decade. This trend raises important questions about the future for homeowners, sellers, and the broader Las Vegas economy, as the city navigates both local and national economic headwinds.
