Las Vegas’ housing market is currently booming with a huge demand in buyers―especially from out-of-state.
The Las Vegas real estate market is the most searched housing market in the United States, and will likely continue to grow.
The increased interest in Las Vegas’ housing market has led to a foray of headaches for potential buyers including lengthy waitlists, bidding wars, and even drawings from some construction companies just for the chance to buy a home.
Whether you’re looking to buy or sell a home in Las Vegas, we’ve created an overview of the city’s current housing market that explains the recent uptick in house sales, advice for buying or selling a home, and what the future looks like:
Vegas’ Current Housing Market
Founder of The New Homes Experts Las Vegas, Jennifer Graff, explained there are several factors responsible for the current housing situation.
One of the main reasons there’s been such a backlog of home buyers is due to a lack of inventory due to home builders being more strategic following the 2008 Recession.
“When the market started to come back the builders were just being a lot more strategic and slowly building up as far as how they were building homes because they didn’t want to get stuck like they did during the recession,” Graff said.
The pandemic has also played a role in Vegas’ housing boom. In particular, Graff believes that the pandemic has caused a large influx of out-of-state buyers from larger, more crowded cities to consider Vegas for its affordability and spaciousness.
“People are jumping online and looking at opportunities in other places that are less crowded, where they can get more space,” Graff said. “And of course, we have no state income [tax].”
Nevada is just one of seven states that don’t require a state income tax, and generally has a low cost of living compared to other states.
There’s also been a large influx in celebrities moving from California to Las Vegas as a result of its affordability.
Lastly, Graff credits historically low interest rates for the increase in homebuyers.
To put things into perspective, the current average 30-year fixed mortgage rate in Nevada remained stable at 2.87 percent according to Zillow as of this week.
Las Vegas homes on average go for about $393,000 according to a study from earlier this year. In Los Angeles and New York City, the average home prices are about $753,000 and $652,000 respectively.
Advice on Buying or Selling a Home
There may not be a lack of homebuyers, but there has been a lack homes to meet the demand
The low inventory of homes hasresulted in bidding wars and waitlists for potential buyers.
Graff said people might be better off looking for a home that’s under their budget.
“You have to tell people you can’t get frustrated,” Graff said. “You might want to look at houses that are a little bit under your original budget.”
She also explained that people may want to consider moving somewhere further outside Las Vegas.
“If you were only looking at Summerlin or the Northwest, I would like to talk about North Las Vegas,” Graff said. “There’s some really amazing new neighborhoods out there.”
As for homesellers, it might be tempting to take as many offers as possible to score the highest bid.
Graff explained though that it’s often best for sellers to let the market determine the price of your home.
“Youre better off pricing it within a reasonable price where your market is right now and then the buyers will come,” Graff said.
The Future of Vegas’ Housing Market
With Vegas’ continued growth, it’s very likely that interest rates will go up according to Graff.
According to Norada Real Estate Developments, Las Vegas home values have gone up 8.5 and Henderson home values have gone up 10.6% over the past year and will continue to rise at a similar pace.
“My advice is to find a home. Maybe it’s not the perfect one, maybe it’s not everything that you want, but the fact that you could own something and build some equity in it—even if you’re going to stay in it for three to five years—that’s better than sitting on the sidelines,” Graff said.
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