The Las Vegas real estate market has remained strong despite the current pandemic. In fact, the market is expected to remain strong throughout the remainder of the year due to high demand for housing. Investors express confidence in the market for buyers of single family, multi-family and commercial properties.
Why the Las Vegas Real Estate Market Remains Strong
Las Vegas remains among the cities with the highest appreciation on real estate purchases due to its thriving businesses and attractive natural surroundings. The most recent 12 months have seen property appreciations of 9% and higher.
Some other reasons home buyers and investors choose to buy Las Vegas real estate include:
- Las Vegas is a resort city.
- It has broad choices in entertainment.
- Due to being a vacation destination, employment remains high.
- Las Vegas hosts thousands of conventions each year.
- The population continues to see a steady increase and it ranks as the 28th highest populated city in the U.S.
Non-Casino Businesses are Experiencing Growth
Because Las Vegas has seen such large growth in the last few years, businesses outside the casino sector are also seeing growth. The medical industry is one such sector that is experiencing growth. Las Vegas is seeing the new businesses open at a faster rate than the national average.
Las Vegas is Experiencing Slower Sales
While the median home price continues upward, the rate of home sales has slowed year over year comparing January 2019 to January 2020. The prior year 72% of homes sold within 60 days compared to 68% in January 2020. Because of this, Las Vegas is currently a buyer’s market, as supply exceeds demand.
The Forecast for the Remainder of 2020
The Las Vegas housing market is expected to remain healthy. Las Vegas home values remain above the national average and predictions show home prices increasing over 3% during the next 12 months. The rental market is also expected to remain strong, as Las Vegas provides a mix of owner-occupied and renter-occupied properties.
Is Las Vegas Investor Friendly?
Because Las Vegas is currently a buyers market, prices are lower than they have been in recent months. This slow-down is due to new home builds and is not expected to last. While real estate may be more affordable now than it has been in the last year, prices are expected to once again increase within the next year.
The Las Vegas real estate is seeing a slight lull; however, demand is expected to remain high and home prices are predicted to continue to rise. For investors and homebuyers, this means now is the time to invest.