The Silver State housing market saw significant shifts over the course of 2022. Early in the year, sales volumes were holding near 2021 levels, and price increases were recorded nearly every month. The back-half of 2022 has been a different story, as rising mortgage rates have dampened demand, slowing sales volumes and driving prices down from their mid-year peaks. The dynamics in the Nevada housing market are not just a local trend, as climbing mortgage rates are throttling back demand nationally.

In the United States, home prices peaked in the second quarter of 2022 with an annua  growth rate of 17.8 percent, according to the Federal Housing Finance Agency’s House Price Index. Home prices dipped 0.7 percent over the next three months, though annual price appreciation remained in double-digits at 12.4 percent in the third quarter. In Nevada, home price growth at the second-quarter peak reached 21.8 percent, exceeding the national rate. However, the state’s home price drop since then had been more pronounced, declining 3.5 percent from the peak. On the year, home prices in the state climbed 9.9 percent, though more recent monthly data showed pricing declines have persisted.

The state’s two largest housing markets have followed suit. In Southern Nevada, the median single-family home price peaked in May 2022 at $482,000. Since then, median prices have declined in five of the last six months. The median price fell to $430,990 in November 2022, down 2.0 percent from the prior month and up 2.3 percent from one year earlier. Even with the late-year decline, the median single-family home price remained 40.4 percent higher than three years ago, with prices increasing an average of 12.0 percent each year. With the recent slowdown, overall sales volumes fell to 1,521 in November 2022, down 11.8 percent from October and down 53.5 percent from November 2021. Sales volumes peaked this year in March when 3,272 homes were sold. As of November, monthly volumes had fallen in seven of the last eight months.

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