B
enzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. The Las Vegas real estate market is becoming increasingly unappealing to buyers, with inventory rising 44.5% in March compared to last year. A surge in new construction has flooded the market, particularly in Sunbelt states, but high interest rates are causing homes to linger.

    According to Zillow senior economist Kara Ng, sellers are listing their homes at a faster rate than last year, but buyers aren't absorbing them as quickly. This has left more homes on the market, with inventory still 20% lower than pre-pandemic norms. The average Las Vegas home value is $437,324, up 3.6% over the past year.

    Price cuts are becoming more common, with listings showing price reductions skyrocketing by 13.6 percentage points year-over-year to 27.3% in February. Affordability is a major hurdle for first-time buyers relying on savings alone, and stock market turbulence could make down payments unaffordable. The influx of Californians during the pandemic work-from-home boom drove up prices, but this trend has slowed significantly due to high interest rates.