The Las Vegas housing market has indeed experienced fluctuations and ups in the last few years. With the current inventory shortage and the possibility of a price reversal, January 2024 is likely an appropriate time to buy. However, the course of the market will be influenced by various variables, including the actions of the Federal Reserve and general economic conditions.
What do you feel about you feeling about the Las Vegas housing market doing right now?
According to the Southern Nevada report, the Las Vegas real estate industry experienced its most challenging year for sales since 2008. The main reason for this decline was the increase in mortgage rates that reached an all-time high of more than 20 years.
Yet the market faces one of the biggest challenges: the shortage of housing inventory and affordable housing. Many homeowners benefitted from low-interest rates during the outbreak and were reluctant to sell their houses because of the attractive mortgage rates they’d secured.
If the current trend towards declining inventory is sustained, Las Vegas home values will remain elevated. But there is a chance to offer opportunities during January, giving buyers an opportunity. The specter of a reverse crash caused by an increase in demand when it is announced that the Federal Reserve lowers interest rates can result in a price increase.
Economic Uncertainty and Forecast
As inflation slows, forecasters believe the Federal Reserve may slash the overnight funds rate over the next year. This could give an increase in the real estate market. But, with the uncertain macroeconomic conditions, the course of the economy through 2024 is still pending.
Single-Family House Sales
In December, there were 1,518 single-family houses sold, representing a 5.8 percent increase from November but an increase of 1% from December 2022. The median price for single-family homes previously owned in December was $449,900. This is an increase of $100 from the month before, but it was a 5.9 percent increase from the year prior. The year began at $425,000, an increase of 5.9 percent year-over-year growth.
- January 2023: $425,000
- February 2023: $424,995
- March 2023: $425,000
- April 2023: $430,000
- May 2023: $442,120
- June 2023: $440,990
- July 2023: $450,000
- August 2023: $447,435
- September 2023: $450,000
- October 2023: $450,000
- November 2023: $450,000
- December 2023: $449,900
The median sale price of townhomes and condos fell by $5,500 from $270,000 to $297,000 in December. This was a decline of 1.8 percent from November. However, it was increasing 9.3 percent over the previous year.
New Listings and Housing Supply
December saw a record number of 1,500 new listings. This is a 23.8 percent decrease over November and a 10.6 percent decrease from the previous year. Southern Nevada’s housing inventory stood at 2.5 months, down 18.2 percent from November and 38.7 percent from the prior year. As a comparison, December 2022 saw four months of inventory available in the market.
Closings and Market Activity
Notably, 57.6 percent of closings in December took place within 30 days after being placed on the market. This is a slight decrease from the November figure of 65.5%. However, it’s a significant rise from December 2022, in which only 40.8 percent of homes had been sold for 30 days or less.
Are Home Prices Dropping in Las Vegas?
The median price for single-family homes decreased during December; the general trend through 2023 showed an increase of 5.9 percent year-over-year growth. The dynamic of home prices is likely affected by market dynamics and the Federal Reserve’s decision-making in the upcoming months.
The possibility of reverse crashes is discussed as a possible cause for a rise in demand after it is announced that the Federal Reserve lowers interest rates. However, the precise timing of a market collapse remains undetermined and depends on the economic conditions affecting the economy in the next year.
January 2024 is a potential period for buyers, given the lack of inventory and the potential for an eventual reverse crash. However, observing the market’s trends, interest rate fluctuations, and economic trends is essential to make educated decisions.
Las Vegas Housing Market Forecast 2024
What are some Las Vegas real estate market projections? The Las Vegas real property market is among the most active and dynamic marketplaces within the United States. One reason for this increase is the robust employment marketplace within Las Vegas. There are many major industries, including hospitality, gaming, entertainment, and hospitality; Las Vegas has a strong job market that draws thousands of visitors into the area. This results from house prices within the region and drives up home costs.
Another reason for the growing Las Vegas housing market is the city’s status as a top tourist destination. With more tourists visiting Las Vegas and enjoying the services the town offers, they might be more likely to buy homes in the vicinity, boosting demand and increasing the value of homes.
The Las Vegas-Henderson-Paradise housing market, according to Zillow’s latest data through October 31, 2023, presents both challenges and opportunities for buyers and sellers.
Current Market Snapshot:
- Average Home Value: $405,400
- Yearly Change: Down 5.2%
- days to pending: About 15 to 20 days
Market Forecast:
Zillow’s 1-year market forecast for Las Vegas-Henderson-Paradise indicates a decrease of 1.4% by October 31, 2024.
Inventory and Listings:
- For Sale Inventory (October 31, 2023): 7,688
- New Listings (October 31, 2023): 2,630
Sale and List Prices:
- Median Sale to List Ratio (September 30, 2023): 0.994
- Median Sale Price (September 30, 2023): $400,700
- Median List Price (October 31, 2023): $449,967
Sales Performance:
- Percent of Sales Over List Price (September 30, 2023): 25.7%
- Percent of Sales Under List Price (September 30, 2023): 52.4%
Source: Zillow
Las Vegas Real Estate Market: Is It A Good Place For Investment?
Las Vegas, renowned for its tourism and entertainment, is also becoming an attractive option for real estate investments. In this article, we’ll examine the state of affairs in the Las Vegas housing market and why it could be the ideal place to invest.
Current Market Trends
The Las Vegas real estate market is on a fascinating path, but by 2023, we will see significant shifts:
The Las Vegas housing market is experiencing signs of cooling. In 2023, sales activity and a substantial drop in the number of new listings slowed down. The longer supply of months indicates that the market is more balanced and suggests an overall cooling trend compared to the previous months.
The drop in home prices is also an excellent opportunity for those looking for lower-cost homes. While prices might have decreased slightly, finding a property in Las Vegas remains challenging due to the lack of inventory. This means the competition for buyers, especially for properties located in desirable locations and at a price, is high.
Top Reasons to Invest in the Las Vegas Real Estate
There are many compelling reasons to think about making an investment in Las Vegas real estate for the long term:
Strong Economy and Population Growth
The Las Vegas metro area is believed to be one of the fastest growing regions within the United States, with approximately 19,000 new residents joining the site from spring 2020 through 2021, as per the U.S. Census Bureau. The city’s varied economy, driven by various sectors such as gaming, entertainment, tourism and technology, healthcare, and education, is a steady source of income for residents.
Rental Income and Appreciation Potential
Las Vegas has a solid rental market, reflected in a large part of the population opting to rent instead of buying. This offers opportunities for investors who want to earn a steady income from rental, particularly in the most desirable areas and close to prominent employment places.
Properties for rental located in Las Vegas are always in high demand. As of September 20, 2023, the average rental for single-family homes rose by 16.7 percent compared to the previous year, which was $1,100. The rent vacancy rate in the city at 4.8 percent is lower than the average national rate of 6.2 percent, which ensures reasonable occupancy rates and a steady rent flow to landlords.
The need for rental property within Las Vegas often results in low occupancy rates. Long-term investors will benefit from an ongoing rental income stream and fewer interruptions between tenants, which can improve the overall profit.
Resilience and Adaptability
Amid recessions and economic slowdowns, Las Vegas has proven to be resilient. Following the challenges caused by the Great Recession of 2008-2009 and the COVID-19 epidemic in 2021-2021, the city recovered with robust growth and expansion. Initiatives and projects continue to revitalize the city.
Infrastructure Development
Las Vegas has ongoing infrastructure development plans, including new roads, public transportation, and community amenities. These investments can improve your quality of life and the value of property, making it a popular option for long-term real estate investors.
Several significant projects have shaped Las Vegas’s future.
- The Resorts World Las Vegas: A $4.3 billion mega-resort that opened in June 2023. It will offer over 3500 rooms, a casino, a theater, and much more.
- The MSG Sphere at The Venetian: A $1.8 billion entertainment facility scheduled to open in late 2023 or 2024. with a spherical-shaped design and the latest technology.
- The Las Vegas Convention Center Expansion: A $980 million project has added 1.4 million square feet to the space, enhancing the city’s ability to host events.
- The Allegiant Stadium: A $1.9 billion stadium that opened in July 2020. It is home to the NFL’s Las Vegas Raiders and hosts concerts and other events.
- The Boring Loop System: A $52 million underground transportation system connecting several Las Vegas areas using autonomous electric vehicles.
Strong Population Growth
Las Vegas has been experiencing constant growth in its population because of its economic potential, low living costs, and luxurious lifestyle. Growing people create a steady need for homes, making it a desirable option for investors looking to invest over the long term.
Las Vegas is a shining light of the desert, especially for people fleeing California or hoping to be successful. Some want to make a living by catering to the countless tourists coming to the city each year or working for companies moving to this tax-free zone. This gives Las Vegas real estate Las Vegas real estate market an optimistic future.
According to PwC’s annual real estate report according to PwC’s report on real estate, the Las Vegas housing market will benefit from a population increase above the national growth rate. According to information provided by the U.S. Census Bureau, this trend is not stopping, which shows a net gain of 6.46 percent between 2012 and 2016.
Economic Diversification
Las Vegas has diversified its economy beyond the tourism and entertainment sectors. Las Vegas is now home to thriving technology, healthcare, and manufacturing industries. The economy’s diversification contributes to the property industry’s stability and growth.
Appreciation Potential
The Las Vegas real estate market has historically demonstrated the potential for property appreciation. Property value will likely rise over time as the city continues to expand and develop, providing long-term investors with capital gain opportunities.
Low Property Taxes
Nevada is famous for its favorable tax system. There is no personal income tax, while property taxes remain low. This could translate into higher yields on the part of real estate owners, which makes the long-term investment more appealing.
Tourism and Hospitality
Las Vegas remains a global tourism destination, and the hospitality industry continues to grow. This guarantees a steady flow of short-term rentals and vacation rental possibilities, which could be profitable for investors looking to invest long-term, particularly in the right areas.
Education and Workforce
The city has made investments in workforce development and education. A highly educated and skilled workforce is an excellent draw for businesses and professionals, which will lead to a rise in demand for real estate and housing potential investment in the long run.
Wealth of Investment Options
Las Vegas offers many real estate investment choices ranging from single-family homes to multi-unit and commercial properties. Diversifying your portfolio through various property types will provide a solid base for long-term financial expansion.
Before committing to Las Vegas real estate for the long run, it is essential to do thorough research, be aware of the market’s conditions, and speak with local real estate experts to make educated decisions. Real long-term real estate investments could be a viable option to build prosperity and security for your finances in a thriving and expanding city.