Las Vegas Housing Market Trends and Statistics
Las Vegas Housing Market
The hottest housing market in the country can be found in Las Vegas, Nevada. So, if you have developed desires to move to Las Vegas as your new home, you are in a long queue of others trooping into the world’s number one entertainment capital. After a series of housing crises in the City which saw a large number of foreclosures, Las Vegas is back on the map with a 9 percent increase in 2017 in comparison to the previous year.
Home buyers influx in Las Vegas Housing Market
This increase in the demand for housing has led to a major economic boost due to the bulging numbers. Similarly, the presence of tourists trooping into the Las Vegas housing market has ensured the numbers remain fairly stable. This should, however, be unconfused with a high cost of living and buying homes. As a matter of fact, California still holds the pole position for being the most expensive place to live.
In June of this year, Las Vegas home sales stood at 89.1 percent while the same month last year had 83.3 percent. Likewise, the demand for condos increased with the high real-estate tide as condos sale went up to 91.2 percent from 87.2 percent in 2017.
Low House Inventory
Presently, Las Vegas has an upsurge of housing demand which threatens to deplete the city’s inventory. September this year, the housing inventory was at 10, 000 units with the median price being $300,000. At such affordable rates, Las Vegas presents a favorable environment for families to grow, work, live and play.
Las Vegas’ high-end malls and state-of-the-art entertainment joints are a magnet for the families who live life to the fullest. The city is also dotted with great schools where kids could start or continue with their education. On the other hand, Las Vegas presents a bigger opportunity for real estate investors to make more bucks in the near future.
A steady rise in house prices
The housing prices in Las Vegas are far from going down. In fact, they forecast to increase every year. Coupled with the current influx of home hunters, Vegas is steadily going back to its former glory. Referring to back when Vegas has the label of the fastest growing city in the USA by Forbes.
Remaining home sellers in Las Vegas do not have to stay longer in the market since houses have fair prices. This presents an opportunity for real-estate investors. They can take advantage of this favorable circumstances and be a part of this goldmine.
Higher uptake of Condominiums
In a similar fashion, in this hot housing market, home resale has increased 16 percent more this year than 2017. Condominiums have also been major beneficiaries. The steady influx of home hunters in Vegas shows a 17.2% increase in condo sales up from last year.
While Las Vegas has experienced a rapid increase in demand for housing, the number of cash buyers has significantly decreased. Dropping from 27.2 percent last year to 22.9 percent this year. However, this has, nonetheless, dampened the spirits of the investors. Additionally, the foreclosure rates have tremendously dropped since the recession 10 years ago. Back when we saw a 70 percent home loss in Vegas.
Lowest vacancies in Las Vegas
The Las Vegas housing market has increased in rent prices with nearly full occupancy rates throughout the city. This is a sharp contrast from the last decade’s mass exodus after a major delinquency ‘outbreak’ triggered foreclosures.
“We still have demand. We have buyers looking for houses,” says Heidi Kasama- President of Las Vegas Association of Realtors. Industry experts predict an all-time high median price of $315,000 in the Las Vegas housing market before year-end. A similar optimism says Vegas may achieve the same in the first quarter of 2019.
Some would-be homeowners are optimistic that the prices are likely to nosedive in the future. For this reason, they opt to rent houses in Las Vegas while they continue speculating for favorable housing costs. On the other side, experts predict higher housing costs.
More mortgages than cash buyers
More home buyers opting for mortgages rather than paying cash. Interest rates on the 30 year-fixed rates mortgages are projected to uptick. Currently, a 4.6% interest rate is charged on the same loan facility.
Las Vegas be the silver bullet to the rent crisis. An estimated 30 percent of American rent payers are paying more than recommended amounts of their income towards rent.