The Las Vegas housing market is sizzling hot with prices surging month over month. Even during these tough times, the Las Vegas properties are selling at record prices and rental homes continue to be in demand. The unemployment rate is still more than 10% but it has got no effect on the housing or rental demand. The avg. rent is up 37.8% for a studio apartment, up 26.3% for 1BR, and up 25.1% for 2BR in Las Vegas (source: Apartmentguide).
It is no doubt Las Vegas is a strong seller's real estate market and the supply of available single-family homes has shrunk to less than two months. Although the pandemic is still causing disruptions, there is no downturn happening in the Southern Nevada housing market. The market has recovered and reached new heights this year. In fact, the Las Vegas housing market is among those cities that are showing the most signs of a positive recovery from the pandemic. Nevada's unemployment rate was at its peak in April (30.0%).
It has now dropped to 12.0% as of October 2020, down from 12.5 percent in September but up 8.3 percentage points when compared to October 2019, according to Local Area Unemployment Statistics (LAUS). As the local economy rebounds and the unemployment rate reduces further, it will have an indirect impact on this region's housing market.
Low unemployment leads to higher future income which in turn leads to a higher demand for housing. Hence, Las Vegas, as well as the Southern Nevada housing market, will boom in 2021. The home values are predicted to rise by 7-8% in the next twelve months (check the forecast below). It has already heated up with strong demand and a shrinking supply driving home price peaks.