The Las Vegas housing market has been through ups and downs over the past few years, with the pandemic having a significant impact on the market. The market is facing a mix of opportunities and challenges for both buyers and sellers. In this blog post, we’ll discuss the housing market trends in Las Vegas based on the report released by Las Vegas Realtors.
Las Vegas Housing Market Report – October 2023
According to the report published by Summerlincommunities.com (Data by LVR), in September 2023, the Las Vegas real estate market saw some significant shifts in key metrics. Let’s dive into the numbers to understand the highs and lows.
In September, there were 1,821 single-family houses that sold, marking a 9.4% decrease from August and a 10.3% decrease from September 2022. The median sales price of previously owned single-family homes increased slightly from $447,435 in August to $450,000 in September, a 0.6% month-over-month increase, remaining flat compared to the same month last year.
For September, there were a total of 2,448 new listings, which is 7.3% lower than August and a significant 27.5% decrease compared to September 2022. In September 2022, there were 928 more listings on the market than in 2023.
The housing supply in Southern Nevada showed 2.2 months of inventory on the market, which is a 15.6% increase from August but a substantial 44.2% decrease from the prior year. This reflects the tight inventory situation in the Las Vegas real estate market.
Rob and Ang made predictions about the real estate market, and here’s how they fared:
- Median Sales Price: Rob predicted a $1,200 decrease, while Ang predicted a $1,000 increase. The actual median sales price increased by $2,565, making Ang the winner in this category.
- Without Offers: Rob guessed 4,000, and Ang guessed 4,100, while the actual number was 4,066. Ang’s prediction was the closest.
- Months of Supply: Rob predicted 2.1 months, and Ang guessed 2 months. The actual months of supply stood at 2.2 months, making Rob the winner here.
Are Las Vegas Home Prices Falling?
No, Las Vegas home prices did not fall significantly in Sept 2023. There was a modest 0.6% increase in the median sales price from August to September, and prices remained relatively flat compared to the same month in the previous year.
Is Las Vegas Housing Market Cooling Down?
Yes, the Las Vegas housing market is showing signs of cooling down. Sales activity decreased by 9.4% from August, and there was a significant drop in new listings (7.3% from August and 27.5% from the previous year). The increased months of supply also indicate a more balanced market, suggesting a cooling trend compared to previous months.
The Las Vegas real estate market exhibited both highs and lows. While sales activity saw a dip, the median sales price remained relatively stable. New listings decreased significantly, indicating a potential shortage of available properties. The housing supply tightened, pointing to a competitive market for buyers. As we move forward, staying updated on these market trends is crucial for anyone considering buying or selling a property in the Las Vegas Valley.
On a monthly basis, here’s how the Las Vegas housing market ended in September 2023
Las Vegas Housing Market Forecast 2023-2024
What are the Las Vegas real estate market predictions? The Las Vegas real estate market is one of the most dynamic and ever-changing markets in the United States. One factor contributing to this growth is the strong job market in Las Vegas. With major industries such as hospitality, gaming, and entertainment, Las Vegas has a strong job market that attracts many people to the city. This, in turn, increases the demand for housing in the area, which drives up home values.
Another factor contributing to the growth of the Las Vegas housing market is the city’s reputation as a popular tourist destination. As more people visit Las Vegas and enjoy the city’s amenities, they may be more inclined to purchase a home in the area, which can increase demand and home values.
According to recent data provided by Zillow, the average home value in the Las Vegas-Henderson-Paradise area is $404,829, representing an 8.4% decrease over the past year. The market is moving swiftly, with homes going to pending in approximately 13 days, as of August 31, 2023.
Looking ahead, Zillow’s 1-year market forecast as of August 31, 2023, predicts a 3.9% increase in home values in the Las Vegas area. This forecast suggests a potential uptick in the market, indicating a positive trend in property values over the coming year.
As of July 31, 2023, the market dynamics are further outlined by the median sale to list ratio of 0.993, indicating that homes are generally selling close to their listed prices. Additionally, 25.4% of sales are transacted over the list price, while 53.1% are sold below the list price, illustrating a varied pricing scenario within the market.
Notably, the median days to pending stands at 13 as of August 31, 2023, emphasizing the speed at which homes are being snatched off the market once listed.
What Does It Mean for Buyers in Las Vegas?
For potential home buyers in Las Vegas, these market trends and forecasts present a valuable opportunity. The 8.4% decrease in average home value over the past year indicates a potentially more affordable market for buyers, offering a chance to purchase a home at a comparatively lower cost.
Moreover, the 3.9% forecasted increase in home values over the next year suggests a favorable scenario for buyers who may see an appreciation in their property investment. Acting promptly in this swiftly moving market is crucial, given that homes are going to pending in a mere 13 days.
Understanding the pricing dynamics, where a significant portion of sales are happening both above and below the list price, provides buyers with the knowledge to negotiate effectively and make informed decisions.
Thus, the current Las Vegas housing market offers a promising landscape for buyers. With the potential for future value appreciation and a variety of pricing scenarios, buyers should engage with the market swiftly and thoughtfully to secure their ideal home at a favorable price.
Las Vegas Real Estate Market: Is It A Good Place For Investment?
Las Vegas, renowned for its entertainment and tourism, is also emerging as an attractive destination for real estate investment. In this section, we’ll delve into the current state of the Las Vegas housing market and explore why it might be the right place for you to invest.
Current Market Trends
The Las Vegas real estate market has been on a remarkable journey, but in 2023, we see some notable shifts:
The Las Vegas housing market is showing signs of cooling down. Sales activity decreased in 2023, and there was a significant drop in new listings. The increased months of supply also indicate a more balanced market, suggesting a cooling trend compared to previous months.
The reduction in home prices also presents opportunities for buyers looking for more affordable housing options. However, while prices may have eased slightly, finding a home in Las Vegas remains a challenge due to low inventory. This means that competition among buyers, especially for properties in desirable locations and price ranges, remains fierce.
Top Reasons to Invest in the Las Vegas Real Estate
Here are several compelling reasons why you should consider investing in Las Vegas real estate for the long term:
1. Strong Economy and Population Growth
The Las Vegas metro area is one of the fastest-growing regions in the United States, with approximately 19,000 new residents from the summer of 2020 to 2021, as reported by the U.S. Census Bureau. The city’s diverse economy, driven by sectors like tourism, entertainment, gaming, technology, healthcare, and education, provides a stable income source for residents.
2. Rental Income and Appreciation Potential
Las Vegas has a strong rental market, with a significant portion of its population choosing to rent rather than buy. This creates opportunities for long-term investors to generate steady rental income, especially in desirable neighborhoods and near employment centers.
Rental properties in Las Vegas are always in high demand. In September 2023, the median rent for single-family homes increased by 16.7% compared to the previous year, reaching $2,100. The city’s rental vacancy rate, at 4.8%, is lower than the national average of 6.2%, ensuring high occupancy rates and cash flow for landlords.
The demand for rental properties in Las Vegas often results in low vacancy rates. Long-term investors can benefit from a stable stream of rental income and less downtime between tenants, increasing overall profitability.
3. Resilience and Adaptability
Lifetime periods of economic downturns, Las Vegas has proven to be resilient. After the challenges of the Great Recession of 2008-2009 and the COVID-19 pandemic in 2020-2021, the city has bounced back with robust growth and development. New projects and initiatives are continually revitalizing the city.
4. Infrastructure Development
Las Vegas has ongoing infrastructure development projects, including new roads, public transportation, and community amenities. These investments can enhance the quality of life and property values, making it an appealing choice for long-term real estate investors.
Several significant projects are shaping Las Vegas’s future:
- The Resorts World Las Vegas: A $4.3 billion mega-resort opened in June 2023, offering over 3,500 rooms, a casino, a theater, and more.
- The MSG Sphere at The Venetian: A $1.8 billion entertainment venue expected to open in late 2023 or early 2024, featuring a spherical shape and state-of-the-art technology.
- The Las Vegas Convention Center Expansion: A $980 million project added 1.4 million square feet of space, enhancing the city’s event capabilities.
- The Allegiant Stadium: A $1.9 billion stadium that opened in July 2020 as the home of the NFL’s Las Vegas Raiders and host for events and concerts.
- The Boring Company’s Loop System: A $52 million underground transportation system connects various locations in Las Vegas using autonomous electric vehicles.
5. Strong Population Growth
Las Vegas has been experiencing consistent population growth due to its economic opportunities, affordable cost of living, and desirable lifestyle. A growing population creates sustained demand for housing, making it an attractive option for long-term investors.
Las Vegas is a shining beacon in the desert for those fleeing California or simply hoping to make it big. Many others simply come to earn a living serving the many tourists who visit here each year or work at the firms relocating to this tax haven. All of this gives the Las Vegas real estate market a bright future.
According to PwC’s annual real estate report, the Las Vegas housing market will enjoy a population growth rate that is well above the national growth rate. This is a continuing trend as data from the US Census Bureau shows a net migration of 6.46% from 2012-2016.
6. Economic Diversification
Las Vegas has diversified its economy beyond the entertainment and tourism sectors. The city now boasts thriving industries in technology, healthcare, and manufacturing. Economic diversification contributes to stability and long-term growth potential in the real estate market.
7. Appreciation Potential
The Las Vegas real estate market has historically shown the potential for property appreciation. As the city continues to grow and evolve, property values may increase over time, providing long-term investors with capital gains opportunities.
8. Low Property Taxes
Nevada is known for its favorable tax climate. The state has no personal income tax, and property taxes are relatively low. This can translate into better returns for real estate investors, making long-term ownership more attractive.
9. Tourism and Hospitality
Las Vegas remains a global tourist destination, and the hospitality industry continues to thrive. This ensures a steady flow of short-term rental and vacation rental opportunities, which can be a lucrative segment for long-term investors, especially in the right locations.
10. Education and Workforce
The city has been making investments in education and workforce development. A well-educated and skilled workforce can attract businesses and professionals, leading to increased demand for housing and real estate investment potential in the long term.
11. Wealth of Investment Options
Las Vegas offers a wide range of real estate investment options, from single-family homes to multi-unit properties and commercial real estate. Diversifying your portfolio with different types of properties can provide a solid foundation for long-term financial growth.
Before investing in Las Vegas real estate for the long term, it’s crucial to conduct thorough research, understand market conditions, and consult with local real estate experts to make well-informed investment decisions. Long-term real estate investment can be a promising path to building wealth and financial security in this dynamic and growing city.
References:
- https://www.lasvegasrealtor.com
- https://summerlincommunities.com/
- https://www.zillow.com/las-vegas-nv/home-values
- https://www.neighborhoodscout.com/nv/las-vegas/real-estate#description
- https://www.realtor.com/realestateandhomes-search/Las-Vegas_NV/overview