There’s a new signal flashing in the housing market—and this time, it’s not just a caution light.
Mark Zandi, chief economist at Moody’s Analytics, just upgraded his housing market warning from a “yellow flare” to a full-blown “red flare,” citing weakening sales, slowed homebuilding, and prices that could soon begin to slide. If you’ve been watching the headlines—or feeling the shift yourself—this may confirm what you’ve been sensing: the market is entering a new phase.
And here in Las Vegas, we’re already seeing some of these trends unfold.
What's Behind the Red Flare?
According to Zandi, the culprit is clear: mortgage rates hovering near 7% with no relief in sight.
“Home sales, homebuilding, and even house prices are set to slump unless mortgage rates decline materially,” Zandi wrote on X.
Let’s break that down:
Existing home sales were up slightly in May but still posted the slowest May pace since 2009—not exactly the spring rebound we hoped for.
New home sales fell 13.7% in May. Housing starts dropped again in June. And even the builders—who were holding things together with mortgage rate buydowns—are pulling back, delaying land purchases and canceling future projects.
Price cuts are rising. According to the latest Housing Market Index, 38% of builders cut prices in July—up every single month since April.
Las Vegas Is Feeling It Too
Even here in one of the country’s most resilient markets, the tone is changing.
Inventory is climbing. Builders are reevaluating their pace. Buyers are cautious, and many homeowners who listed are now pulling properties off the market. In fact, delistings nationally are up 47% year over year, according to Realtor.com.
And while Vegas hasn’t seen a significant drop in pricing yet, the pressure is mounting. Nationally, the Case-Shiller Index showed prices dipping 0.3% in April—a subtle shift, but a signal worth watching.
So What Does This Mean for You?
If you're a buyer, this shift could be your opening. With more listings, more price cuts, and less competition, you may finally have the edge—especially if you're looking at new construction (yes, builders are still offering juicy incentives, but the window may not stay open for long).
If you're a seller, this is your moment to get real about where the market is headed. Pricing isn’t about wishful thinking—it’s about meeting buyers where they are today. With inventory climbing and buyer budgets tightening, the homes that are selling are the ones priced strategically from the start.
What’s Next?
This is exactly the kind of real-time shift we’ll be diving into in next week’s YouTube episode, so stay tuned. I’ll be covering:
Where Las Vegas stands in relation to the national “red flare”
Builder sentiment and what’s happening behind the scenes
And the top opportunities I’m seeing in the new construction market right now
Thinking About Making a Move?
Whether you’re looking to downsize, relocate, or just find your next chapter, let’s talk. I’ll help you navigate this market with strategy, confidence, and a clear plan — no pressure, no guessing.
Subscribe and hit the notification bell over on The New Home Experts Las Vegas YouTube Channel so you don’t miss it.
In the meantime, if you're wondering how these changes affect your plans—whether you’re buying, selling, or just trying to time the market—I'm here to talk strategy. Let’s have a conversation that actually makes sense for you.