The Las Vegas housing market has been through ups and downs over the past few years, with the pandemic having a significant impact on the market. The market is facing a mix of opportunities and challenges for both buyers and sellers.
Current Las Vegas Housing Market Trends – November 2023
Las Vegas continues to attract individuals from across the country. According to Redfin, an online real estate brokerage, the city is particularly popular among those moving from Los Angeles, making it a prime choice for those seeking a change of scenery.
The Las Vegas Valley secured the second spot in the nation for interstate migration, with approximately 4,000 residents added in October. Sacramento claimed the top spot with around 5,000 new residents during the same period. This surge in population reflects the ongoing appeal of Las Vegas as a destination for those seeking a new home.
Market Trends
Single-Family Home Sales
How is the housing market doing? According to the Southern Nevada report published by Summerlincommunities.com (Data by Las Vegas Realtors), in November, 1,435 single-family houses were sold, marking a 15.5% decrease from October and a 5.7% decline from November 2022. Despite the decline in sales volume, the median sales price for previously owned single-family homes remained steady at $450,000, reflecting a 4.4% increase from the previous year.
- Median Price Trends:
- June 2023: $440,990
- July 2023: $450,000
- August 2023: $447,435
- September 2023: $450,000
- October 2023: $450,000
- November 2023: $450,000
Condos and Townhomes
The median sales price for condos and townhomes in November was $275,000, indicating a slight 0.2% decrease from October but a notable 5.8% increase from the previous year. This upward trend in prices demonstrates the overall stability and growth of the Las Vegas real estate market.
Luxury Market
In November, 88 homes were sold for $1 million and above, representing a decrease from October's 96 sales. However, the median sales price in the luxury market surged to $1,416,288, marking a substantial increase from October's $1,300,000. Notably, a $25 million house in Spanish Trail sold within 9 days, showcasing the allure of extravagant properties in the region.
Market Trends Continued
New Listings and Housing Supply
November saw a total of 1,969 new listings, indicating a 15.6% decrease from October and a 6.1% drop from the previous year. Additionally, there were 4,353 single-family houses listed without offers at the end of November, showing a 3.3% increase from the previous month but a significant 40.7% decrease from the prior year.
Housing Supply in Southern Nevada
The housing supply in Southern Nevada stood at 3 months of inventory in November, marking a 22.3% increase from October but a substantial 37.2% decrease from the prior year. In November 2022, there were 4.8 months of inventory, indicating a shift towards a more competitive market with limited housing availability.
Closings and Market Dynamics
Notably, 65.5% of closings in November occurred within 30 days of being on the market, showcasing a brisk pace of transactions. While this represents a slight decrease from October's 67.2%, it is significantly higher than November 2022, where only 47% of homes were on the market for 30 days or less.
Is It a Buyer's or Seller's Housing Market?
The current market conditions in Las Vegas raise the question of whether it is a buyer's or seller's housing market. The data suggests a dynamic and evolving landscape, influenced by factors such as population growth, housing supply, and median sales prices.
Are Home Prices Dropping?
Contrary to the national trend of fluctuating home prices, Las Vegas has maintained stability in its median sales prices. In November 2023, the median sales price for both single-family homes and condos/townhomes remained robust, indicating resilience in the local real estate market.
On a monthly basis, here's how the Las Vegas housing market ended in October 2023
Las Vegas Housing Market Forecast 2023-2024
What are the Las Vegas real estate market predictions? The Las Vegas real estate market is one of the most dynamic and ever-changing markets in the United States. One factor contributing to this growth is the strong job market in Las Vegas. With major industries such as hospitality, gaming, and entertainment, Las Vegas has a strong job market that attracts many people to the city. This, in turn, increases the demand for housing in the area, which drives up home values.
Another factor contributing to the growth of the Las Vegas housing market is the city's reputation as a popular tourist destination. As more people visit Las Vegas and enjoy the city's amenities, they may be more inclined to purchase a home in the area, which can increase demand and home values.
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: Approximately 15 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%
Las Vegas Real Estate Market: Is It A Good Place For Investment?
Las Vegas, renowned for its entertainment and tourism, is also emerging as an attractive destination for real estate investment. In this section, we'll delve into the current state of the Las Vegas housing market and explore why it might be the right place for you to invest.
Current Market Trends
The Las Vegas real estate market has been on a remarkable journey, but in 2023, we see some notable shifts:
The Las Vegas housing market is showing signs of cooling down. Sales activity decreased in 2023, and there was a significant drop in new listings. The increased months of supply also indicate a more balanced market, suggesting a cooling trend compared to previous months.
The reduction in home prices also presents opportunities for buyers looking for more affordable housing options. However, while prices may have eased slightly, finding a home in Las Vegas remains a challenge due to low inventory. This means that competition among buyers, especially for properties in desirable locations and price ranges, remains fierce.
Top Reasons to Invest in the Las Vegas Real Estate
Here are several compelling reasons why you should consider investing in Las Vegas real estate for the long term:
1. Strong Economy and Population Growth
The Las Vegas metro area is one of the fastest-growing regions in the United States, with approximately 19,000 new residents from the summer of 2020 to 2021, as reported by the U.S. Census Bureau. The city's diverse economy, driven by sectors like tourism, entertainment, gaming, technology, healthcare, and education, provides a stable income source for residents.
2. Rental Income and Appreciation Potential
Las Vegas has a strong rental market, with a significant portion of its population choosing to rent rather than buy. This creates opportunities for long-term investors to generate steady rental income, especially in desirable neighborhoods and near employment centers.
Rental properties in Las Vegas are always in high demand. In September 2023, the median rent for single-family homes increased by 16.7% compared to the previous year, reaching $2,100. The city's rental vacancy rate, at 4.8%, is lower than the national average of 6.2%, ensuring high occupancy rates and cash flow for landlords.
The demand for rental properties in Las Vegas often results in low vacancy rates. Long-term investors can benefit from a stable stream of rental income and less downtime between tenants, increasing overall profitability.
3. Resilience and Adaptability
Lifetime periods of economic downturns, Las Vegas has proven to be resilient. After the challenges of the Great Recession of 2008-2009 and the COVID-19 pandemic in 2020-2021, the city has bounced back with robust growth and development. New projects and initiatives are continually revitalizing the city.
4. Infrastructure Development
Las Vegas has ongoing infrastructure development projects, including new roads, public transportation, and community amenities. These investments can enhance the quality of life and property values, making it an appealing choice for long-term real estate investors.
Several significant projects are shaping Las Vegas's future:
- The Resorts World Las Vegas: A $4.3 billion mega-resort opened in June 2023, offering over 3,500 rooms, a casino, a theater, and more.
- The MSG Sphere at The Venetian: A $1.8 billion entertainment venue expected to open in late 2023 or early 2024, featuring a spherical shape and state-of-the-art technology.
- The Las Vegas Convention Center Expansion: A $980 million project added 1.4 million square feet of space, enhancing the city's event capabilities.
- The Allegiant Stadium: A $1.9 billion stadium that opened in July 2020 as the home of the NFL's Las Vegas Raiders and host for events and concerts.
- The Boring Company's Loop System: A $52 million underground transportation system connects various locations in Las Vegas using autonomous electric vehicles.
5. Strong Population Growth
Las Vegas has been experiencing consistent population growth due to its economic opportunities, affordable cost of living, and desirable lifestyle. A growing population creates sustained demand for housing, making it an attractive option for long-term investors.
Las Vegas is a shining beacon in the desert for those fleeing California or simply hoping to make it big. Many others simply come to earn a living serving the many tourists who visit here each year or work at the firms relocating to this tax haven. All of this gives the Las Vegas real estate market a bright future.
According to PwC's annual real estate report, the Las Vegas housing market will enjoy a population growth rate that is well above the national growth rate. This is a continuing trend as data from the US Census Bureau shows a net migration of 6.46% from 2012-2016.
6. Economic Diversification
Las Vegas has diversified its economy beyond the entertainment and tourism sectors. The city now boasts thriving industries in technology, healthcare, and manufacturing. Economic diversification contributes to stability and long-term growth potential in the real estate market.
7. Appreciation Potential
The Las Vegas real estate market has historically shown the potential for property appreciation. As the city continues to grow and evolve, property values may increase over time, providing long-term investors with capital gains opportunities.
8. Low Property Taxes
Nevada is known for its favorable tax climate. The state has no personal income tax, and property taxes are relatively low. This can translate into better returns for real estate investors, making long-term ownership more attractive.
9. Tourism and Hospitality
Las Vegas remains a global tourist destination, and the hospitality industry continues to thrive. This ensures a steady flow of short-term rental and vacation rental opportunities, which can be a lucrative segment for long-term investors, especially in the right locations.
10. Education and Workforce
The city has been making investments in education and workforce development. A well-educated and skilled workforce can attract businesses and professionals, leading to increased demand for housing and real estate investment potential in the long term.
11. Wealth of Investment Options
Las Vegas offers a wide range of real estate investment options, from single-family homes to multi-unit properties and commercial real estate. Diversifying your portfolio with different types of properties can provide a solid foundation for long-term financial growth.
Before investing in Las Vegas real estate for the long term, it's crucial to conduct thorough research, understand market conditions, and consult with local real estate experts to make well-informed investment decisions. Long-term real estate investment can be a promising path to building wealth and financial security in this dynamic and growing city.
References:
- https://www.lasvegasrealtor.com
- https://summerlincommunities.com/
- https://www.zillow.com/las-vegas-nv/home-values
- https://www.neighborhoodscout.com/nv/las-vegas/real-estate#description
- https://www.realtor.com/realestateandhomes-search/Las-Vegas_NV/overview
Sure, let's break down the concepts and terms used in the article about the Las Vegas housing market:
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Market Trends: This covers the analysis of how the housing market is performing. It includes various indicators such as sales volume, median prices, and inventory.
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Single-Family Home Sales: Refers to the transactions involving detached homes intended for single families. It's a significant segment in real estate.
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Median Price Trends: Indicates the midpoint of sale prices, showing the overall direction of prices in the market.
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Condos and Townhomes: Refers to properties that share walls but have separate ownership. These often differ in terms of ownership responsibilities and amenities from single-family homes.
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Luxury Market: Focuses on high-end properties, typically priced at $1 million and above. This market segment often behaves differently from the general real estate market.
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New Listings and Housing Supply: The number of properties newly available for sale and the total inventory on the market. It influences market dynamics and buyer-seller interactions.
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Housing Supply in Southern Nevada: Indicates the number of months it would take to sell the current inventory of homes at the current sales pace. Lower supply often leads to a seller's market.
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Closings and Market Dynamics: Reflects the pace of transactions and the time properties spend on the market before being sold. It provides insights into buyer demand and seller flexibility.
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Buyer's or Seller's Market: Describes the balance of power between buyers and sellers based on factors like inventory, demand, and pricing trends.
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Home Prices Dropping: Examines whether the prices of homes are decreasing or remaining stable over time.
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Market Forecast: Predictions about future market conditions based on current trends, economic indicators, and other relevant factors.
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Average Home Value and Yearly Change: Reflects the current value of homes and the percentage change in value compared to the previous year.
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Days to Pending: Represents the average number of days it takes for a property to go under contract after being listed.
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Median Sale to List Ratio: Compares the actual sale price of a home to its list price, indicating whether homes are typically selling above or below the listed price.
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Percent of Sales Over/Under List Price: Illustrates the percentage of homes sold above or below their listed prices, providing insight into market competitiveness.
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Real Estate Investment: Highlights reasons and factors making Las Vegas a potentially lucrative place for real estate investment, such as economic growth, population trends, job markets, infrastructure development, and tourism.
Each of these factors contributes to the understanding of the Las Vegas housing market's dynamics and attractiveness for potential buyers, sellers, and investors.
