Las Vegas ranks fourth in the nation for seller concessions as 66.7 percent of August home sales included them

Las Vegas ranks fourth for seller concessions

Home sellers in the Las Vegas valley are among the most likely in the nation to give buyers concessions, the Las Vegas Review-Journal reported, citing a new report from Redfin. In August, 66.7 percent of local home sales involved a concession, placing the valley fourth among U.S. metro areas.

Only three metros ranked higher, according to the report: Atlanta at 72.8 percent, Charlotte at 67.9 percent and Phoenix at 67.4 percent. The Review-Journal said elevated mortgage rates and a growing supply of homes are giving buyers more power in negotiations.

How Las Vegas compares nationally

Across the country, 44.7 percent of homes sold in August came with concessions, according to Redfin. That was the highest national share since 2020, the report found. The Las Vegas share was higher than that national figure.

Why buyers have more leverage

Redfin tied the high concession rates to buyer's market conditions. "Concessions are most prevalent in those metros largely because they're big-time buyer's markets," the report stated, as quoted by the Review-Journal. Redfin listed Nashville, Houston and Las Vegas among the five strongest buyer's markets in the country, with more than twice as many sellers as buyers.

With that imbalance, buyers have many options and sellers must compete for offers, according to Redfin, which makes concessions more likely. Redfin also said August was the strongest buyer's market in its records, which go back to 2013.

Mortgage rates as a driver

Cheryl Van Elsis, a Redfin premier agent in Las Vegas, told the Review-Journal that elevated mortgage rates are one of the biggest drivers of seller concessions right now. The newspaper reported that rates rose above 7 percent in late September and are at their highest level in three years.

What concessions look like

Concessions can include a seller covering a buyer's closing costs or helping the buyer get a lower mortgage rate, the Review-Journal reported. Van Elsis said a seller's contribution toward closing costs or a rate buydown can significantly change how much a buyer pays at closing and each month.

She said that with rates elevated, a mortgage rate buydown of 1 or 2 percent is far more advantageous to a buyer than a discount on the purchase price.

Prices stay high in Las Vegas

Even as conditions shift toward buyers, home prices in Las Vegas have remained stubbornly high, according to the Review-Journal. The paper attributed that in part to homeowners who are reluctant to sell and to the limited land available for new development.

The pandemic swing in the Sun Belt

The Review-Journal described how historically low mortgage rates during the COVID-19 pandemic set off a wave of buying, selling and refinancing, and how that activity slowed once inflation pushed interest rates higher starting in 2022. Housing markets nationwide have struggled to return to pre-pandemic conditions since then, the paper reported.

Redfin said Sun Belt markets have seen especially pronounced swings. Las Vegas, Austin and Miami saw demand climb as remote work let people relocate, and the arrival of higher-income buyers and renters made housing less affordable for some existing residents, according to the Review-Journal.

That relocation boom has faded, but the Review-Journal reported that increased construction and a larger number of homes for sale have outlasted some of the demand behind it. Redfin's report said those markets have "done a 180, leaving diminished demand and a big pile of listings." More coverage of the local market is in our real estate section.

What to watch next

• Mortgage rates, which the Review-Journal reported climbed above 7 percent in late September to a three-year high; a local Redfin agent called elevated rates one of the biggest drivers of concessions.
• Las Vegas home prices, which the Review-Journal said have remained stubbornly high despite buyer's market conditions.
• The balance of sellers and buyers in Las Vegas, which Redfin counted among the five strongest buyer's markets with more than twice as many sellers as buyers.