The Las Vegas Valley has seen one of the biggest year-over-year jumps in home purchase agreement cancellations in the U.S., according to a new report from Redfin.

According to the report, 19% of all residential real estate transactions, a 3.5% jump, were canceled last December. This places the Las Vegas Valley as 8th in the country for largest percentage of deals falling through, a substantial jump from December 2024 when the city ranked 20th, the Redfin report said.

Redfin has home purchase agreement cancellations across the country at its highest rate on record, and Tia Roman, the broker and owner of ReMax Reliance in Las Vegas said there is a bit of confusion right now in the market.

“Most sellers still have a mindset that we are in a seller’s market, which we had been in for several years now,” she said. “This is clearly not true any longer. A seller’s market versus buyer’s market always comes down to the difference between supply and demand. With over 9,000 homes currently on the market, buyers have choices.”

Roman said what is happening right now is owner-occupied sellers are “particularly emotional” about their homes and feel the value of their properties should be higher. However, she added increased inventory, decreased prices and the overall supply and demand curve has shifted for the Las Vegas Valley’s residential real estate market.

“Sellers are reluctant to accept our current reality and still expect to be able to sell at prices comparable to the last few years,” she said. “They don’t want to accept that they missed out on the top of the market, and unfortunately, they end up staying on the market longer and “chasing the market down.”

Home price remain stubbornly high in the valley, however have started to drop in multiple Sun Belt cities such as Austin, Texas, and Miami and Jacksonville, Florida. The valley has a massive land constraint keeping prices high as the federal government controls virtually all the land left in the valley for potential residential development, and has been slow to release it for years.

Both Redfin and Zillow have the valley squarely in a “buyer’s market,” according to their statistical models, and Roman said potential local home buyers clearly understand this.

“Buyers are seeing this as a strong buyer’s market and are not shy to negotiate hard to get the deal they have been waiting for,” she said. “Even if a buyer is under contract on a particular home, if a new one comes on the market they like better or feel is a better deal, buyers are not opposed to canceling their current escrow and switching gears to a different property. A negligible financial loss for a home inspection and possibly an appraisal is better than feeling they lost out on a better house or a better deal.”

Roman said she has seen a drop in active listings over the past two months, which could signal the start of yet another shift in the local market.

“With so many homes being on the market for longer periods of time, a large number of sellers have pulled their homes off the market with intention to wait out the market until they can get the price they want, or they are choosing to attempt to offer the property for lease,” she said. “This has increased the number of rental homes on the market which coincidentally has shifted rental prices down slightly.”

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