A shift is happening. Can you feel it?

It doesn't matter what type of market you're talking about; anytime there are buyers and sellers, there will be movement in the prices. Real estate is no exception to this principle; the Las Vegas market, particularly, can exhibit some relatively steep swings. We all remember the rise and fall of the early 2000s. Well, at least we should. What's that saying about history and remembering? Hmmm... Never mind, I forgot, so let's return to the topic. 

Speaking of steep swings, the current median sales price for homes in the valley is up 55% since 2019 to about $480,000 as of August 2024. Which on the surface looks like a sign of strength. When you, as a real estate professional, an investor, or even a homeowner at the kitchen table, are trying to determine the appropriate time to buy or sell, the continuous up arrow on the charts gives you a false sense of perpetuity. Go ahead and plant those tulip bulbs (that one is for you market buffs). Yet, in the back of our minds, that little voice sneaks into our thoughts and reminds us that nothing lasts forever!

That being said, let's look at where we are right now. As stated earlier, home prices have increased, with the median sale price for single-family homes rising to $475,000 as of August 2024. While this reflects a definite upward trend from previous years, the market's growth has slowed somewhat compared to earlier rapid price increases. Couple that with the fact that sales volumes have decreased and the average days-on-market for home listings is increasing, and one could safely conclude that demand is softening.

On the surface, what has been stated may be enough to keep you from throwing caution to the wind, but there is one more little nugget. The final indicator that convinces me there is a shift happening in the market is that the price decreases for existing inventory have been steadily increasing to the point where, on some days, there are more adjustments to the downside than new listings. It makes you think, doesn't it?

Now, I'm no prognosticator, and I am not predicting any crash in the market. But it is safe to say that, at the very least, a consolidation, a cesura, if you will (did I spell that right?), is taking place. Where we go from here is anyone's guess. But, I think we all need to adjust our expectations for the time being when entering this market and be more patiently tempered when it comes to selling or investing. And depending on what happens over the next few months, it could be a buyer's market very soon.