What Does 5 Months of Housing Supply Mean for Las Vegas Sellers?

by Ryan Rose

You've heard the term "months of supply" but might not know what it means. It's actually one of the most important numbers in real estate. And right now, Las Vegas sits at about 5 months.

Let me explain why that matters.

What Months of Supply Means

Months of supply answers a simple question: If no new homes came on the market, how long would it take to sell everything currently listed?

The calculation: Take current inventory and divide by monthly sales rate.

Las Vegas has over 7,000 single-family homes listed. At current sales rates, that's roughly 5 months of supply.

The Balance Point

The National Association of Realtors considers 6 months of supply a "balanced" market where neither buyers nor sellers have a clear advantage.

Months of Supply	Market Type	Who Has Leverage
Under 4 months	Seller's market	Sellers
4-6 months	Balanced market	Neither/both
Over 6 months	Buyer's market	Buyers

At 5 months, Las Vegas is approaching balance but still slightly favors sellers. However, it's very different from the 2-3 months of supply we saw in 2021-2022 when sellers had all the power.

How We Got Here

A year ago, Las Vegas had roughly 3 months of supply. Inventory has surged 26% since then. At the same time, sales velocity has slowed.

More homes listed + fewer homes selling = higher months of supply.

This shift happened relatively quickly. The market feels different than it did even a year ago.

What This Means for Your Sale

More competition. You're not the only option. Buyers can choose from thousands of homes. Yours needs to stand out.

Buyers have leverage. They can negotiate. They can walk away. They can wait for the next option. Expect offers below asking and requests for concessions.

Pricing matters more. In a tight market, almost anything sells. In a balanced market, correctly priced homes sell and overpriced homes sit.

Condition matters more. When buyers have choices, they choose the home that needs the least work. Preparation pays off.

Time matters more. Expect 2-4 months from listing to closing. Plan accordingly.

The Silver Lining

Five months of supply isn't a buyer's market. Prices are still at record highs. Homes are still selling. Distressed sales (foreclosures, short sales) are near historic lows at just 0.5% of transactions.

This is a normal market, not a crisis. Sellers who understand the dynamics can still succeed. Those expecting 2021 conditions will be frustrated.

What to Watch

If months of supply keeps rising toward 6 or 7, we'll officially enter buyer's market territory. That could mean price pressure and longer selling times.

If supply stabilizes or drops, sellers regain leverage. Spring typically brings more buyers, which could absorb some inventory.

For now, 5 months means: sell smart, price right, and be patient.

The Bottom Line

Five months of housing supply puts Las Vegas in balanced territory. Sellers can still get strong prices, but the easy wins of the past few years are gone. Adjust your strategy accordingly.

Want to understand how current market conditions affect your specific Las Vegas neighborhood? Let's talk local data.

Frequently Asked Questions About Las Vegas Housing Supply and Selling

Q1: What does 5 months of housing supply mean?

Five months of housing supply means that at the current sales rate, it would take approximately 5 months to sell all the homes currently listed on the market if no new homes were added. This number is calculated by dividing the current inventory of homes by the monthly sales rate.

Q2: Is 5 months of supply a buyer's or seller's market?

Five months of supply indicates a balanced market that slightly favors sellers. According to the National Association of Realtors, 6 months is considered perfectly balanced. Markets under 4 months favor sellers, while markets over 6 months favor buyers. At 5 months, Las Vegas is approaching balance but hasn't fully shifted to a buyer's market.

Q3: How has Las Vegas housing supply changed recently?

Las Vegas inventory has surged 26% over the past year, moving from roughly 3 months of supply to about 5 months. This shift happened due to more homes being listed and fewer homes selling compared to previous years, representing a significant change from the tight market conditions of 2021-2022.

Q4: How long does it currently take to sell a home in Las Vegas?

Sellers in Las Vegas should expect 2-4 months from listing to closing in the current market. This is longer than the rapid sales experienced during the seller's market of 2021-2022, but still represents a healthy market where homes are moving at a reasonable pace.

Q5: Should I be worried about selling my Las Vegas home right now?

No, five months of supply doesn't indicate a market crisis. Prices remain at record highs, homes are still selling, and distressed sales are near historic lows at just 0.5% of transactions. This is a normal, healthy market—not the frenzied seller's market of recent years, but not a declining market either. Sellers who price correctly and prepare their homes well can still achieve strong results.

Q6: What's the most important thing for Las Vegas sellers to know right now?

Pricing and home condition matter more than ever. With over 7,000 single-family homes on the market, buyers have choices. Correctly priced homes in good condition will sell, while overpriced or poorly maintained homes will sit on the market. Sellers need to be realistic about pricing and prepared to negotiate with buyers who now have more leverage.

Q7: What could change the current 5-month supply situation?

If months of supply continues rising toward 6-7 months, Las Vegas would enter buyer's market territory with potential price pressure. Conversely, if supply stabilizes or drops—particularly during the spring buying season when more buyers typically enter the market—sellers could regain leverage. Market conditions can shift based on inventory levels and buyer demand.

Q8: How does Las Vegas compare to a balanced market?

At 5 months of supply, Las Vegas is very close to the 6-month benchmark that defines a balanced market. This means neither buyers nor sellers have a significant advantage. Buyers have more negotiating power than they did when supply was at 2-3 months, but sellers can still achieve good prices if they approach the market strategically with proper pricing and home preparation.