Las Vegas is experiencing a significant increase in housing inventory, which has nearly doubled over the past year. While the principles of supply and demand would suggest a decrease in home prices, this has not yet occurred.
Instead, sellers are increasingly offering concessions, such as covering closing costs and agent commissions, to protect their sale price. These seller-paid contributions have risen dramatically compared to a year ago, effectively stabilizing prices.
However, this trend may be reaching its limit. Lenders cap the amount a seller can contribute to a transaction. If inventory continues to grow without a corresponding increase in demand, and sellers reach their concession caps, we could see a downturn in home prices. Nothing like the dramatic downturn we saw in 2008, but an adjustment none the less.
I am not suggesting you wait as a buyer, because demand will increase once prices start to slip and you may have significant competition.