Las Vegas, the Hottest Market in Town

Which real estate markets are hot right now? If you bet Las Vegas is in the top spot, you’re onto a sure thing. In fact, although Vegas has been number one on realtor.com a few times in the last fifteen years, it’s actually mostly been for homes purchased in short sale or foreclosure.

Finally, in 2018, Las Vegas has snagged the most elusive title – that of the hottest market to watch for overall home sales. Homes in the Valley are going fast, with 2017 having been the third best year ever for this area.

With a solid economy bringing more tourist dollars to Vegas, and overall growth in the double digits now is a great time to live, work, and play in Sin City.

We love stats here in the city of lights. If you’re looking for a stable job market and a beautiful, safe area to build or buy your forever home, here are a few facts and figures about the Las Vegas Real Estate Market that may help shave the odds in your favor:

• Median home prices are on the rise: Prices for single-family homes have jumped over $40,000 in the last two years. The median home price as of December 2017 was $239,500 including all types of properties. Single Family homes recorded higher. View Report.
• Suburbs are growing: Places like Summerlin, and other affluent suburbs designed for planned community living, are commanding the highest prices. The addition of amenities like clubhouses, jogging trails, and parks in these communities has helped drive up the prices and increase demand. The median price in Summerlin, for instance, was $365,000 last year for all properties.
• It’s a seller’s market right now: According to the Greater Las Vegas Association of Realtors (GLVAR), there is less than a three month’s supply of homes available for sale right now. This is a dream for sellers and a challenge for buyers. The shortage of available homes may be part of the reason home prices are climbing.
• Sales of all types of housing are climbing: Single-family home sales increased 14 percent over last year, while condo and townhouse sales increased 13 percent over 2016.
• Economists are predicting that home prices will increase another 5 percent over the course of 2018. This is great for sellers, and a bit better for buyers. Although prices are climbing, the drastic increase that Las Vegas has seen over the past two years seems to be slowing down. As the demand catches up to the supply, expect the growth to taper off and prices to stabilize.

Source: http://www.jparsons.net/housingbubble/las_vegas.png

There’s nothing wrong with playing your advantage in the Las Vegas housing market right now. You’d be hard-pressed to find anyone betting against investment in a home right now. Many important indicators are pointing to a stable housing and job market right now, and remarkable, yet sustainable growth.

• Housing sales are consistent – while we’re seeing growth, these gains aren’t simply flukes or artificially inflated prices like we saw right before the Great Recession. And while it’s a seller’s market right now, it’s due to the desirability of living in Las Vegas, versus a fire sale that happened in 2009. Homes are selling to the right buyers, in the right price ranges. More importantly, homes are holding their value year over year.
• The economy overall is strong and gaining. Unemployment in Las Vegas right now is at 5.4 percent and has been steadily dropping. This indicates a robust job market, and thus more buyers seeking to invest in a home.

Many expert realtors and finance professionals believe that the housing bubble of 2008 was due more to poorly written mortgages than anything else. They believe that we shouldn’t see a housing issue like this again. That being said, make sure that your home loan is solid, and that you’re in a good place to buy or sell.

If you’re a home buyer concerned about your mortgage, work with an experienced lender that you trust, who can walk you through the process. As a homeowner, you will have the responsibility to ensure that you are selecting the right home loan and the right amount for you. Here’s a calculator to see how much home you can comfortably afford.

With a small amount of inventory, and some, but not a lot, of new building going on in Las Vegas right now, the high demand and low supply may push home prices higher, simply due to availability. Construction companies acknowledge that they’ve been deliberately underbuilding over the last several years. However, many agents think that there is still room to grow in the Valley, and many homeowners feel secure that they’ve gotten a good value on their home.

While new houses are helping to push the median single-family home price in Las Vegas (the median for new builds is $360,000), home resales are still the bulk of real estate transactions in Las Vegas. Although the prices are robust, they are still a ways off from setting records.

If you’re thinking of selling your home in Las Vegas, whether you’re upgrading or relocating, now is the time. With a tight housing market, a large influx of ready buyers, and a robust job market, prospects look good for sellers. Investing in real estate may be an option, also. For those who look to make a little extra with rental properties, the tight market may mean that short-term renters are looking for a place while they shop for their dream home.

Make sure that you have pre-approved financing, preferably with a letter from your lending bank. Know what you want, and be ready to make an offer. Hire a professional real estate agent like Lori Ballen REALTOR® and her team with good connections in the area you wish to buy – with a housing market like this, your realtor may know of properties before they land on places like Zillow or Trulia.

Know what kind of home you want, and make sure that you communicate well with your agent so that they can help find you the place of your dreams.