How Interest Rate Hikes Affected Financed Buyers in 2022

Now let’s look at how the Fed’s fight against inflation affected the amount of buyers that obtained financing in 2022. As rates crept upward throughout the year, sales volume decreased significantly for guard-gated homes priced at $500,000 and higher.

However, despite mortgage rates more than doubling in some cases, the proportion of buyers that obtained financing decreased only slightly—from 53% of transactions in the first half of 2022 to 50% in the second half.

With that in mind, what are the odds of getting a cash offer on your home sale? The higher the price point, the more likely a home is to have a cash buyer— ranging from 40% of the $500,000-$999,999 purchases to 71% of the $4,000,000+ purchases (in the second half of 2022).

No one is sure where the luxury market will go in 2023, but it will likely hinge on whether the Fed’s future rate hikes end up putting us in a recession. No matter what happens, it’s always wise to have a team of real estate experts on your side. If your goal is to buy or sell this year, we’re always here to help!

Community Address

Summerlin

Country Rose

Estates

SF PRICE P/SF

9801 Camden Rose Court 3,573 $765,000 $214

Eagle Hills 9128 Golden Eagle Drive 5,419 $2,700,000 $498

Mesa Ridge 10679 Patina Hills Court 4,543 $2,725,000 $600

Red Rock Country Club 2045 Alcova Ridge Drive 5,037 $2,438,000 $484

3047 Red Springs Drive 3,085 $1,350,000 $438

3174 Dove Run Creek Drive 2,325 $1,260,000 $542

Reverence 3041 Raywood Ash Drive 4,141 $1,475,000 $356

2640 Nevada Agave Lane 3,882 $1,425,000 $367 3000 Dusky Willow Lane 2,123 $1,155,000 $544

3031 Full Lotus Drive 2,695 $900,000 $334 11193 Black Fire Opal Drive 2,441 $875,000 $358

The Ridges 5 Promontory Ridge Drive 10,621 $11,750,000 $1,106 4204 Lapis Ridge Court 4,618 $3,200,000 $693

31 Hunting Horn Drive 4,888 $2,700,000 $552 35 Panorama Crest Avenue 4,380 $2,300,000 $525

Willow Creek 10869 Eden Ridge Avenue 3,951 $1,230,000 $311

Community Address

SF PRICE P/SF LAS VEGAS

One Queensridge Place

Southern Highlands

9101 Alta Drive, #1703 4,879 $4,400,000 $902

9101 Alta Drive, #1003 2,638 $1,260,000 $478

9101 Alta Drive, #1007 2,271 $1,150,000 $506

9101 Alta Drive, #606 2,137 $1,015,000 $475

15 Fire Rock Court 6,202 $3,900,000 $629

30 Pebble Dunes Court 6,902 $3,350,000 $485

11803 Weybrook Park Drive 2,742 $805,000 $294

Spanish Trail 35 Princeville Lane 6,823 $3,865,000 $566

12 Congressional Court 4,439 $1,600,000 $360

8341 Plum Creek Court 2,973 $1,375,000 $462

Henderson

Anthem

Country Club

27 Anthem Creek Circle 5,624 $1,600,000 $284

Ascaya 1 Boulderback Drive 4,832 $5,800,000 $1,200

MacDonald Highlands

1493 Foothills Village Drive 9,227 $4,700,000 $509

1491 Reims Drive 6,917 $2,000,000 $289

No closed sales for the month of December in Aventura, Bellacere, Canyon Fairways, Corta Bella, Country Club Hills, Eagle Rock, Mountain Trails, The Palisades, The Summit Club, Tournament Hills, The Vineyards, Canyon Gate, Queensridge, Regency at the Lakes, Spanish Hills, Ten Oaks, Tuscan Cliffs, The Fountains, Hillsboro Heights, Legacy Estates, Roma Hills, Seven Hills - Rapallo, and Seven Hills - Terracina/Venezia