Different housing market calls for different approach

After several years of highly competitive conditions, the housing market is giving buyers something they have not had in a while: more choices and more time to make a decision.

Inventory has increased, buyers have gained leverage, and sellers are adjusting to a market where home prices are not climbing at the pace they once were. While some have characterized current conditions as a buyer’s market, I view the Las Vegas market as more neutral. It feels like a buyer’s market compared with the last several years, but sellers can still compete when their homes are priced and positioned appropriately.

For both buyers and sellers, today’s market requires adjusting expectations and making decisions based on current conditions rather than what worked a few years ago.

Focus on affordability, not just interest rates

Interest rates continue to dominate conversations about whether now is the right time to buy, particularly following the Federal Reserve’s recent decision to raise the federal funds rate by a quarter percentage point. While the federal funds rate does not directly determine mortgage rates, the decision adds another consideration for buyers already navigating higher borrowing costs.

That makes it even more important to look beyond the rate alone. I encourage buyers to focus on two numbers: how much money they will need to close, including their down payment and closing costs, and how much they will pay each month afterward.

Those figures provide a better picture of affordability. Buyers should also shop lenders and compare financing options to find the best fit for their circumstances.

A lender may tell you the maximum amount you qualify to borrow, but that does not mean you need to spend that much. Choose a payment that feels comfortable and leaves room for your other financial priorities.

Know what you can and cannot change

More inventory gives buyers an opportunity to be patient and more selective. When evaluating a home, I recommend prioritizing three things: location, the home’s size and layout and its finishes.

Flooring can be replaced, walls can be painted and kitchens can be renovated. A home’s location cannot change, and substantially altering its size or layout can be much more difficult.

Buyers should also recognize that there is rarely a perfect home. Instead of searching for a property that checks every box, determine your must-haves and separate them from your wants. Focus on finding a home that meets your most important priorities and understand where you are willing to compromise.

Be careful about trying to time market

Some buyers remain on the sidelines waiting for home prices or borrowing conditions to reach a certain point. The challenge is that no one can predict exactly what the market will do next.

I have provided monthly housing market updates on my radio show for more than a decade, and even professionals who follow the market every day cannot know with certainty where prices or mortgage rates are headed.

The Federal Reserve’s latest rate increase is another reminder that economic conditions can change quickly. Rather than building a homebuying strategy around the expectation that borrowing costs will improve, consider whether you can comfortably afford a home under current conditions, whether it meets your needs and whether buying makes sense for your long-term plans.

Sellers need to adjust too

Sellers who became accustomed to rapidly rising prices and intense buyer competition also may need to adjust their expectations.

Homeowners naturally have an emotional connection to their property, but buyers will compare it with other homes available in the same area. Recent comparable sales, active listings and neighborhood trends provide a stronger basis for determining value.

When possible, I encourage sellers to tour competing properties. Seeing another home in person can provide a valuable perspective on its condition, finishes and overall presentation. Broad Las Vegas housing statistics provide context, but what is happening in your neighborhood often tells you more about your home’s value.

If a property is not attracting offers, sellers should also evaluate the marketing before automatically reducing the price. Most buyers begin their search online, making professional photography and a strong digital presentation essential. Open houses, broker events and neighborhood outreach may help generate additional interest.

I often remind sellers that the listing price is a marketing tool. Ultimately, the market will determine what a buyer is willing to pay.

Make decisions based on today’s market

A changing housing market does not have to be a bad market. It simply requires buyers and sellers to adjust their approach.

Buyers have more opportunities to compare properties and understand value, while sellers need to pay closer attention to their competition and local market data. With borrowing costs remaining an important part of the equation, buyers should focus on what they can comfortably afford today, rather than basing their decision on where rates may go next.

The right time to buy or sell is less about finding perfect market conditions and more about making an informed decision that makes sense for your finances, lifestyle and long-term plans.

Harvey Blankfeld is a Las Vegas real estate professional who has served the Southern Nevada community since moving to the valley in 1993. He holds several industry designations, including Certified Residential Specialist (CRS), Accredited Buyer’s Representative (ABR) and Seniors Real Estate Specialist (SRES). Harvey is also the host of Las Vegas Real Estate NOW, a weekly radio show he has hosted since 2014, where he shares insights on local housing market trends and real estate topics.