NAR Chief Economist Lawrence Yun addresses Las Vegas Realtors

Rising interest rates surpassing 7 percent are taking a toll on the new home and existing home market in Las Vegas, according to NAR Chief Economist Lawrence Yun. He said there won’t be a let up anytime soon, while continuing to express optimism about the future of the city’s housing market. Yun spoke last week at the Las Vegas Realtors association headquarters.

Home Builders Research reported that new home net sales in August were 30 percent below the 2026 average, with a monthly total of 502—down 32 percent from July and the lowest since December 2025. The average net sales per week of 130 was the lowest of the year. Meanwhile, the Las Vegas Realtors association reported September existing home sales fell 7.4 percent compared to September 2025, with condos and townhomes down nearly 13 percent. Nearly 8,000 homes are on the market without an offer, a nearly 7 percent increase over the past year.

Yun has revised his 2026 forecast multiple times: last November he predicted a 14 percent increase in existing home sales and a 4 percent rise in median prices; by June, that was lowered to a 4 percent increase in both. Now, he forecasts existing home sales nationwide will increase no more than 2 percent, if at all, and home prices will rise by 2 percent. He expects new home sales to fall by 5 percent this year. The 30-year-fixed mortgage rate is hovering around 7.5 percent, its highest since November 2023.

Yun said home prices remain on solid ground, noting the Las Vegas median price of $470,000 in September is the same as last year but down from the June all-time high of $490,000. He added that sellers are learning they must drop prices to close sales. While he believes prices could be 1 percent or 2 percent above a year ago due to wages outpacing growth, Yun said it’s too early to forecast 2027 due to uncertainty, stressing that in the short term, it’s all about mortgage rates.

Sources: Las Vegas Review-Journal