- Las Vegas Real Estate Market
- Market Trends for Las Vegas 2019 – 2020
- Las Vegas Real Estate properties will continue to appreciate
- Prices are increasing at a lower rate
- There is more inventory on the market
- Single-family homes are becoming more unpopular
- HOUSING SUPPLY IN LAS VEGAS
- Bank owned and foreclosure statistics
- United States Real Estate Trends
- Las Vegas Real Estate
- The short term rental market is strong
- Best Las Vegas Neighborhoods
- Best Las Vegas neighborhoods for investors
- Is investing in Las Vegas Real Estate Market a good idea?
Las Vegas Real Estate Market
Las Vegas is known for its entertainment industry but is almost as famous for its real estate opportunities. The demand for housing is at an all-time high for reasons that include an increase in population and the limits of expansion. The following trends and demographics illustrate why Las Vegas is and will continue to be well into the future, a prime real estate market.
Market Trends for Las Vegas 2019 – 2020
TRENDS IN LAS VEGAS REAL ESTATE. WHILE SOME EXPERTS ARE SUGGESTING THAT REAL ESTATE PRICES MAY PEAK IN LATE SUMMER OR EARLY FALL, BUYERS ARE STILL FINDING A LIMITED NUMBER OF PROPERTIES ON THE MARKET. LET’S TAKE A CLOSER LOOK TO DETERMINE WHAT STATISTICS SUGGEST ABOUT THE LAS VEGAS AND HENDERSON, NEVADA, AND THROUGHOUT LAS VEGAS AND CLARK COUNTY.
The median home price in the city of Las Vegas is $273,800 which is an increase of 1.8% over the past year. The average price per square foot is $169. The rate at which home prices are rising in Las Vegas is 0.8%. Values have gone up in the past year by 1.8%. The current rate of median home prices is slightly less than $300,000. The real estate housing market is positive.
If you use the average selling price in Las Vegas, then the price of a single-family home has raised by 17 percent from May 2017 to May 2018. At the end of 2017, the average selling price for a single-family house in Las Vegas was $297,290. In order to get an accurate picture, the top price and bottom price are eliminated in order to arrive at the average.
A look at historical average prices shows that the price went up an average of 10 percent during 2017 rising from $267,647 at the end of 2016. This continues a trend where the average selling price of a single-family home was $255,105 in 2015, $237,430 in 2014 and 214,120. Therefore, average prices of a single-family home have raised 28 percent in the last five years.
Las Vegas Real Estate properties will continue to appreciate
Zillow reports that the Las Vegas home sale market has appreciated more than 16% in the last year. According to the experts, this is a trend investors can expect to continue for the foreseeable future. Anyone wanting to get into the rental real estate market focusing on long term tenants will find Las Vegas an attractive option & good Las Vegas housing investment.
Prices are increasing at a lower rate
Phoenix has replaced Las Vegas in the number one spot for the fastest rising real estate prices. After a year of growth at the fastest rate nationally, the Las Vegas Real Estate Association reports that the market is slowing down. This is not a bad thing.
The data shows that prices are still increasing, just at a slower rate than previously. This creates stability in the market. Experts report the Las Vegas real estate market is more stable than it’s been in the past 20 years. This means there is no expectation of a real estate crash or a housing bubble.
There is more inventory on the market
The seller’s market may finally be over. Homes are staying on the market longer with no offers. The Greater Las Vegas Association of Realtors reports there were almost 8,000 homes for sale without an offer in July. That’s a year over year increase of 63%. Nearly 2,000 townhouses and condos were on the market in July with no offers. That’s a year over year increase of 112%. All of this gives buyers more leverage because there is less competition.
Single-family homes are becoming more unpopular
New Home builders are beginning to pull back from single-family home construction as buyers turn to more affordable attached homes. Even though builders have closed on more than 4,200 single-family homes so far this year, that number is down more than 7% from this time last year. The sale of attached homes, on the other hand, has increased by slightly more than 17% during the same time.
HOUSING SUPPLY IN LAS VEGAS
According to the Greater Las Vegas Association of REALTORS, at the end of May, there was a 1.5 month supply of town homes, single-family homes and condominiums, on the market. May was a busy month with 3,890 units selling. A month earlier, 3,571 units sold representing an increase of 8.2 percent.
CLOSING PRICE IN LAS VEGAS
The average closing price in Las Vegas is 99.3 percent of its listing price, which is another strong indication that Las Vegas is currently experiencing a strong seller’s market. Not only did the total number of units selling increase during May, but the value of the average sale increased. In May, the average selling price was $295,000 compared to $289,000 in April. While this represents only a small increase of 2.1 percent, it shows that the trend of prices increasing still continuing.
SINGLE-FAMILY HOMES BY TYPE
The last month where single-family dwellings are broken down by type available is from January 2018. During that month, a total of 2,187 buyers welcomed the new year in by closing on a home. Of those, 80 percent or 1,719 units were single-family residences, 11.6 percent or 254 units were condominiums, 7.54 percent or 165 units were townhouses and the remaining were manufactured housing.
AVERAGE DAYS ON MARKET IN LAS VEGAS
The average days on market fell to 40 days during 2017. This is the lowest that has been seen during the last five years, and it seems to be a trend that is continuing in 2018. During the last five years, the average days on market shot up in 2014, but it has continued to fall ever since.
Bank owned and foreclosure statistics
New Jersey was the only state that outranked Nevada in terms of foreclosures during the 2007 housing crash. At that time nearly 25% of Nevada’s home mortgages were in trouble.
Currently, there are approximately 1,700 homes or less in the Las Vegas area in some stage of foreclosure. The percentage of Las Vegas homeowners in trouble is slightly more than 7%. The number of properties going into foreclosure in September 2019 was 12% lower than in August 2019 and 35% lower than in September 2018.
United States Real Estate Trends
Looking across the United States, the housing market is stable in the southern part of the United States while it is considered weak in the northern half. Only Nevada, Utah, North Dakota, Maryland and Rhode Island is considered to have a very strong housing market. Nevada is one of the strongest housing market in the United States, and they are predicted to have the largest increase in house values.
Las Vegas Real Estate
Those individuals who are considering buying or selling property in Clark County find very similar trends within the city limits of Las Vegas. Historically, prices climbed
The short term rental market is strong
Airbnb, Home Away, VRBO are big business in Las Vegas & Henderson. Because of the attractions, the climate, and the economy, there isn’t an off season. Short term rentals are something investors should consider. There doesn’t seem to be any downturn about to take place when it comes to the reasons so many tourists visit the city every year.
Best Las Vegas Neighborhoods
Summerlin, Henderson, Paradise, Spring Valley, and Enterprise are among the most popular neighborhoods in Las Vegas. This is where most listings are. As of the first week in November 2019, there were nearly 1,000 listings in Paradise with prices ranging from $60,000 to more than 21 million. Trulia had slightly more than 400 rental listings ranging from $490 to $12,000 a month.
There were also about 1000 listings in Spring Valley during the first week of November. The prices range from $44,900 to slightly over 18 million. Trulia had 476 rental listings at prices ranging from $795 to $11,000 a month.
Rancho Oakley is the most expensive neighborhood in Las Vegas with an average home listing price of $450,000. The most affordable neighborhood in Las Vegas is Pioneer Park with an average listing price of $195,000. Downtown East Las Vegas is considered one of the most economical places in the city in which to live.
The following is a list compiled of real estate in popular Las Vegas neighborhoods:
- City Center
- E Bonanza Rd / N Lamb Blvd
- Smoke Ranch Rd / N Decatur Blvd
- E Owens Ave / Linn Ln
- E Bonanza Rd / Linn Ln
- Cielo Vista Ave / W Vegas Dr
- Alta Dr / Palmhurst Dr
- W Bonanza Rd / F St
- Stewart Ave / N Main St
- W Flamingo Rd / S Hualapai Way
Best Las Vegas neighborhoods for investors
1. The Strip. The median home price is $311,067. The average rent is
$1,598. The cash on cash return is 5.69%.
2. Paradise. The median home price is $313,465. The average rent is $1,252. The cash on cash return is 1.29%.
3. Downtown. The median home price is $347,104. The average rent is $1,523. The cash on cash return is 2.05%.
4. Huntridge. The median home price is $238,429. The average rent is $955. The cash on cash return is 1.2%.
5. Buffalo. The median home price is $355,284. The average rent is $1,171. The cash on cash return is 1.43%.
7. Cultural Corridor. The median home price is $222,219. The average rent is $920. The cash on cash return is 1.17%.
Is investing in Las Vegas Real Estate Market a good idea?
1. There are good deals available. The housing market in Las Vegas took about a 50% hit when prices crashed about 10 years ago. The market has since rebounded, but because of inflation, they are still well below historic levels. In the same vein, there are not the number of foreclosures as in the past, but they are still on the high end of national standards. One Las Vegas home in a thousand is foreclosed on each month.
2. Prices are still relatively low. Prices have seen somewhat of a decline because of the available. The demographics that make Las Vegas so hot aren’t changing, however. That means the decline is temporary, and prices are sure to start rising.
3. Taxes are low. Nevada has no state income tax, and the overall tax rates are less than 1%. Nevada’s property tax is currently 0.77%. There are few counties where the property tax is over 0.25%. Investors still have to make mortgage payments, unless they pay cash for a property. Maintenance and insurance have to be factored in as well.
4. Las Vegas Real estate market expansion is limited. The majority of Nevada is owned by the federal government. Las Vegas is geographically constrained by the deserts in the area. Clark County has petitioned the Bureau of Land Management to allow them to take possession of 38,000 acres to build housing.
Whether or not the Bureau will ever give its permission is an open question. The result is that Las Vegas currently cannot expand to meet the demand even though it is surrounded by plenty of open land. This will drive prices up.
5. The Las Vegas Real Estate market is still off-limits to renters. Many Las Vegas residents would love to be homeowners, but can’t afford the prices. Instead of building affordable housing, many builders have opted for luxury construction only a few can purchase. This means there will continue to be a large population of renters who are unable to purchase the upscale housing currently on the market.
6. Housing and rent prices are on the rise. The Las Vegas housing market is rising at about 3.2% over last year. The average homeowners should expect to pay for a home in Las Vegas in 2019 was $300,000. This growth rate is healthier than those that are in double digits. The price rate may be skewed by the fact that builders are concentrating on luxury homes that drive up prices in the real estate market in Las Vegas.
7. Las Vegas is friendly to landlords. Evicting non-payment tenants is easy in Nevada. Eviction can begin within 7 days of non-payment of rent. A case can go to court within 7 days. Once the court approves the landlord’s complaint, the renter may be forced to leave the premises within 1 day. Late fees have no limits, although the late fees must be spelled out in the rental agreement.
8. VISION LV. Vision LV, A downtown Las Vegas Mega Project. A community based master planning effort for downtown Las Vegas.
9. Las Vegas Strip Projects Planned For 2020 – 2021+ A number of new developments & business opportunities arise with city expansion & investment creating jobs & growth. To list a few upcoming projects:
- Las Vegas Stadium
- Resorts World Casino
- Caesar’s Forum Conference Center
- Las Vegas Convention Center expansion
- Circa Resort & Casino
- Sahara Las Vegas Renovation
- Hard Rock Hotel & Casino Renovation
- South Point Casino & Hotel Renovation
- Harrah’s Casino Renovation
- Downtown Las Vegas Expo Center
- Wynn Convention Center
- Skyline Hotel & Casino Expansion
- Downtown Grand
- Showcase Mall
- Symphony Park Development Project
- MSG Sphere
10. Las Vegas Raiders are coming. Finally the Las Vegas Raiders are coming. The land & home close to the stadium have already increased in value with more business investing in the area.
11. Bleutech Park Las Vegas. Future Mini City Bleutech Park is coming to Las Vegas. This $7.5 Billion dollar project will offer housing, retail, offices, luxury residential, hotel & entertainment.
12. Virgin Trains Project. This $4.8 Billion dollar project Virgin Trains Project high speed train between Las Vegas & Southern California
14. The job market is strong. The job market in Las Vegas is diverse. It includes low skill jobs that are good-paying and involve the entertainment, service and hospitality industries.
The population is young, well educated, and upwardly mobile. More than 80% of workers commute to and from their jobs. This makes Las Vegas one of the most car-oriented cities in the country
The education level is slightly higher than the national average. More than 23% of Las Vegas residents over the age of 25 have a bachelor’s degree or higher. Get more info on Las Vegas Schools.
Las Vegas is ethnically diverse. 21.22% of the population is foreign-born. English is the most common language spoken. Other languages spoken are Spanish and Tagalog.
As your trusted Las Vegas Real Estate Experts, were here to help. Contact Us Here. Get a Free Consultation or feel free to reach us directly at 702.710.1234 or visit our website SellMyHome.Vegas with your Las Vegas Real Estate Questions. My Team will be in touch ASAP to schedule a time to chat.
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