The Las Vegas real estate market is as hot as the desert heat in Nevada and the time to buy a Las Vegas property is now. The first half of 2019 saw a huge increase in the demand for housing in Las Vegas, Nevada. The high demand was followed by an increase in population, as well as an overall improvement of the economy in the area.
All these factors have had a huge impact on the Las Vegas housing market, which is considered one of the hottest markets in the US at the moment. Las Vegas has experienced several booms in its history. And it saw an incredible real estate bust during the Great Recession.
Las Vegas’ recover hasn’t made the same headlines as the 50% or greater declines in home values did a decade ago. Yet its recovery shouldn’t keep investors away. For savvy investors, the Las Vegas real estate market is both stable and predictable. In 2019, the Las Vegas housing market was the hottest in the United States. For buyers looking at relocating and buying property in southern Nevada, the Las Vegas real estate market 2020 offers a great opportunity for finding your dream home.
Las Vegas is the destination point of millions of visitors, the town is famous for its vibrant nightlife, exciting gaming action, and the natural allure of the beautiful desert that surrounds the greater metropolitan area. Las Vegas is of the highest appreciating communities in the nation. In the last 12 months, the Las Vegas real estate has appreciated at over 9%, and this is strong signal for investors looking to invest in the city.
Let’s take a close look at the Las Vegas housing market predictions 2020 and find out why to invest in this sturdy market. It is important to note that there are many variables that can potentially impact the value of a real estate in Las Vegas and some of these variables are impossible to predict in advance.
Las Vegas Real Estate Market Forecast 2020
What are the Las Vegas real estate market predictions for 2020? Las Vegas housing market 2020 is shaping up to continue the trend of the last few years as one of the hottest markets in U.S. Las Vegas was named as the number one real estate market in USA for 2018 by Realtor.com based on the price and amount of existing homes, new home construction and local and economic trends.
In the past year, Las Vegas housing market was rising fast even though there was low availability of homes and a very high demand. Although home prices are rising at one of the fastest rates in the country, Las Vegas home builders are selling the most houses in incredible numbers.
The latest real estate data from Zillow shows that the current median home value in Las Vegas is $284,384. Las Vegas is currently a buyer’s market – which means there are less no. of qualified buyers in the market place and more homes for sale.
The home prices have risen by 1.1% over the last year. Looking forward in this year, the Las Vegas real estate market forecast is that home prices will continue to increase by 2.6%. Since Jan 2015, the median home price in Las Vegas has increased from $192,000 to $290,000.
Here is the Las Vegas, NV real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 2.6% till Dec 2020.
The median list price per square foot in Las Vegas is $170, which is lower than the Las Vegas-Henderson-Paradise Metro average of $171. Zillow reports that 13.9% of the listings in Las Vegas had a price cut in Dec 2019, which is a good thing for buyers. The median price of current listings in Las Vegas is $299,900.
Homes are selling below their asking prices as the median price of homes that have been sold out is $274,900. It shows sellers were willing to negotiate on prices as they were finding it more and more difficult to sell homes at asking prices. The median rent price in Las Vegas is $1,500, which is the same as the Las Vegas-Henderson-Paradise Metro median of $1,500.
Las Vegas Housing Market Forecast 2020 – 2021
Here is a short and crisp Las Vegas housing market forecast for the 3 years ending with the 3rd Quarter of 2021. The accuracy of this forecast for Las Vegas is 71% and it is predicting a positive trend. The LittleBigHomes.com estimates that the probability for rising home prices in Las Vegas is 71% during this period. If this price forecast is correct, the Las Vegas home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Las Vegas Real Estate Market Forecast.
Las Vegas Real Estate Market Trends
We shall now discuss some of the most recent housing trends in the Las Vegas area. In the past year, the Las Vegas housing market was so hot that it outperformed best US housing markets like Seattle. The Las Vegas real estate market is entirely brimming with new businesses. It’s friendly business environment is propping up the economy and helping towards the positive Las Vegas real estate market trends. The new businesses are propping up at a much faster rate than the national average. Las Vegas home values reported the highest year-over-year gains in home values, totaling a 13 percent increase, according to the S&P’s Corelogic Case-Shiller Index in 2018 (the leading measure of U.S. home prices).
We shall now discuss some of the latest real estate market trends in the Las Vegas such as median home prices, inventory, economy, growth and neighborhoods, which will help you understand the way the local real estate market moves in this region.
Trulia has currently 6,485 resale and new homes for sale in Las Vegas, NV including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. The median sales price is $289,000 and homes are selling for about $165/sqft.
Some of the most popular neighborhoods in Las Vegas are Paradise, Enterprise and Spring Valley. Here you’ll find the maximum no. of listings. Currently, there are 956 listings in Paradise, Las Vegas, NV, and the home prices range from $60K – $21.2M. Additionally, there are 413 rental properties on Trulia within a range of $490 – $12K. The schools are rated between 1/10 – 10/10.
Similarly, there are 1009 listings in Spring Valley, Las Vegas, NV, and the home prices range from $44.9K – $18.5M. Additionally, there are 476 rental properties on Trulia within a range of $795 – $11K. The local schools in this neighborhood are rated between Rated 1/10 – 10/10.
As per the real estate company called Neigborhoodscout.com, the median house price in Las Vegas is $274,135, which indicates that home prices in Las Vegas are above the national average for all cities and towns in the United States. Three and four bedroom single-family detached homes are the most common housing units in Las Vegas. Other types of housing that are prevalent in Las Vegas include duplexes, row houses and homes converted to apartments. Las Vegas has both renter-occupied as well as owner-occupied housing accounts.
Currently, there are 3,909 single family homes for sale in Las Vegas, NV on Zillow. Additionally, there are 1,675 single family homes for rent in Las Vegas, NV. Under potential listings, there are about 17 Foreclosed and 971 Pre-Foreclosure homes. These are the delinquent properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate. Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
U.S. single-family rental market has seen steady rent increases between 2010 and 2019. According to CoreLogic’s latest Single-Family Rent Index (SFRI), which analyzes single-family rent price changes nationally and among 20 metropolitan areas, it shows a national rent increase of 3% in April 2019, as compared to 2.8% in April 2018.
In the past month, 2268 homes have been sold in Las Vegas, NV on Redfin.com. In addition to houses in Las Vegas, there were also 1920 condos, 711 townhouses, and 85 multi-family units for sale in Las Vegas last month. The median listing price is $300,000. According their statistics, the Las Vegas housing market is somewhat competitive. Homes in Las Vegas receive 1 offers on average and sell in around 55 days.
The average sale price of a home in Las Vegas was $286K last month, up 5.9% since last year. The average sale price per square foot in Las Vegas is $164, up 1.9% since last year. A hot listing in Las Vegas can sell for around list price and go pending in around 24 days.
Here is the latest Las Vegas housing market data for the month of Dec 2019 from Redfin.com. The sale to list price ratio shows us that it was a trending more like a seller’s market in the past month.
Las Vegas Housing Market Trends
|Median List Price||$300,000|
|Avg. Sale / List||97.9%|
|Median List $/Sq Ft||$170|
|Median Sale Price||$286,000|
|Median Sale $/Sq Ft||$164|
Analyzing real estate data from multiple sources gives us a much broader perspective of the direction in which a market is moving. There are currently 6,671 homes for sale in Las Vegas, NV on Realtor.com. The asking price of single family homes can start from $100,000 and can go up to $18.5M for a luxury property located in Spring Valley neighborhood in the city of Las Vegas, NV. Spring Valley is a popular neighborhood of Las Vegas with the median home price of $310K.
Las Vegas is a big rental property market. There are currently 2754 rental properties in Las Vegas and their rent prices range from $363 to $25,000 per month. There are 196 new construction homes for sale in Las Vegas within a price range of $195,000 to $12M. The most affordable new construction homes can found in Sunrise Manor neighborhood in the city of Las Vegas, NV.
Sunrise Manor is a popular neighborhood of Las Vegas with a median home price $235K. Pioneer Park is the most affordable neighborhood, with a median listing price of $202,000. According to Realtor.com, in December 2019, the median list price of homes in Las Vegas, NV was $298K in December 2019, trending up 3.1% year-over-year. The median listing price per square foot was $170.
About 11 months ago, in December 2018, the median list price of homes in Las Vegas, NV was $288K, trending up 4.7% year-over-year. The median listing price per square foot was $166. The median sale price was $287.5K. Homes in Las Vegas, NV sold for 2.89% below asking price on average in December 2018. It takes an average of 41 days on market for a home to sell in Las Vegas.
The median list price in Las Vegas is $320,000 on Movoto.com. The median list price in Las Vegas went up 1% from January to February. Las Vegas’s home resale inventories is 5,204, which decreased 9 percent since January 2020. The median list price per square foot in Las Vegas is $175.
As you can see in the graph, the median price per sq ft in Las Vegas rose to its peak value in Dec 2019, when it was $174. In January 2020 it was $175. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in February
Las Vegas is a minimally walkable city in Clark County with a Walk Score of 41. There are 74 neighborhoods in Las Vegas. If you are looking to invest in the Las Vegas real estate, you should that three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. There should be a natural and upcoming high demand for rental properties. Demand would raise the price of your Las Vegas investment real estate and you should be able flip it for a lump sum profit.
The neighborhoods in Las Vegas must be safe to live in and should have a low crime rate. The neighborhoods should be close to basic amenities, public services, schools and shopping malls. The Paseos has a median listing price of $597K, making it the most expensive neighborhood. Pioneer Park is the most affordable neighborhood, with a median listing price of $202.4K.
Some of the most popular neighborhoods in Las Vegas are Rhodes Ranch, Mountain Edge, Silverado Ranch, Queensridge, Desert Shores, Northwest Las Vegas, Vegas Heights, Las Vegas Country Club, Peccole Ranch, Los Prados, Sun City Summerlin, Centennial Hills, South Las Vegas, Southwest Las Vegas, Lone Mountain, Painted Desert and The Lakes.
Las Vegas, NV Foreclosures And Bank Owned Homes Statistics
Nevada was at the nexus of the 2007 housing crash. Nevada spiraled to the second highest foreclosure rates in the nation, after New Jersey, with upwards of a quarter of Nevada mortgages underwater. As per the Las Vegas foreclosure data by Zillow, in Las Vegas 1.4 homes are foreclosed (per 10,000). This is the same as the Las Vegas-Henderson-Paradise Metro value of 1.4 and also greater than the national value of 1.2.
The percent of delinquent mortgages in Las Vegas is 1.2%, which is higher than the national value of 1.1%. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Las Vegas homeowners underwater on their mortgage is 7.2%, which is higher than Las Vegas-Henderson-Paradise Metro at 7.1%.
|Total No. of Foreclosures in Las Vegas||1645 (RealtyTrac)|
|Homes for Sale in Las Vegas||5199|
|Median List Price||$289,000 (0% rise vs Nov 2018)|
There are currently 1,645 properties in Las Vegas, NV that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 5,199. In December 2019, the number of properties that received a foreclosure filing in Las Vegas, NV was 21% higher than the previous month and 13% lower than the same time last year.
Is Las Vegas a Good Place For Real Estate Investment?
Is a Las Vegas investment property still a decent real estate investment? If you are looking to buy Las Vegas investment properties, then you must read this. These things make Las Vegas real estate market stand out when it comes to choosing a place to invest in 2020 and beyond. Las Vegas real estate market provides an excellent opportunity for investors and home buyers. Homebuyers and investors in Las Vegas are expressing confidence in the stable housing prices and the number of available housing units on the market. New businesses are actually being created at a much faster rate than the national average.
Las Vegas rental properties near these new businesses will benefit greatly due to increasing tenant pool and the general improvement in economic activity that they bring. We have already discussed the Las Vegas housing market forecast for answers on why to put resources into this robust market in 2020. Although, this article alone is not a comprehensive source to make a final investment decision for Las Vegas but we have collected ten evidence based positive things for those who are keen to invest in the Las Vegas rental properties.
Let’s take a look at the number of positive things going on in the Las Vegas real estate market which can help investors who are keen to buy an investment property in this city. We’ll focus on real reasons to invest in the Las Vegas real estate instead of giving you vague appeals to buy a house or an investment property because of general ambiance and mere promises of future growth.
1. Prices Are Low Relative to Recent Highs
There have been articles claiming that Las Vegas is ready for another bust. However, prices are actually declining somewhat as new housing stock comes onto the market. This explains why the inventory of unsold existing homes doubled at the end of 2018. Yet the demographic trends that keep the Las Vegas housing market so hot aren’t stopping. This means that the Las Vegas real estate market is seeing a lull with a guarantee prices will start to rise. The Las Vegas housing market 2020 is a great place for a real estate investment. It remains relatively affordable than the expensive seller markets in the US.
2. Real Estate Deals Remain Available
When people lose their jobs in great numbers, home prices crash as they did in Las Vegas a decade or so ago. Homes went from an average price over $300,000 to less than $150,000. Home prices have recovered, though due to inflation, they remain well below historic peaks. Likewise, Las Vegas foreclosure rates have fallen but they remain high by national standards. Around one in a thousand homes is foreclosed on each month.
3. Renters Remain Locked Out of the Housing Market
While homes are being built, many people are unable to afford them. This is because the developers who survived the Great Recession are maximizing their profits by building luxury homes, not the affordable homes that the many want. For those who can afford Las Vegas investment properties, this guarantees a large rental population that isn’t going to be able to afford the new upscale properties that are coming onto the market.
4. Nevada Is the Ultimate, Low Tax Locale
While those who own Las Vegas investment properties will need to pay their mortgage if they don’t pay cash for the property and ongoing expenses like maintenance and insurance, Nevada offers very low taxes. There is no state income tax. The average overall property tax rate is just under 1%. The state property tax is 0.77%, while the county property tax is rarely above 0.25%. For example, the total Clark County property tax bill is 0.96%, yielding a $2400 property tax bill on a $250,000 home.
5. Geography Limits How Much Las Vegas Can Expand
The wide open deserts around Las Vegas actually constrain the Las Vegas real estate market. The federal government owns the vast majority of the state. The Clark County government asked the federal government to allow them to take over 38,000 acres of land and start building housing. Nevada Congressional delegation has to ask the Bureau of Land Management, and they may take years to give their permission if they ever do. This means that Las Vegas is surrounded by a lot of open land, but it cannot simply expand to meet demand. This will continue to drive up prices in the Las Vegas housing market.
6. Las Vegas Housing Prices Are Rising Slowly but Surely
We don’t think the Las Vegas housing market is set up for a bust because it isn’t overheating. For example, the median single family home’s price was just under $300,000 in the summer of 2018, a 3.2% increase over the prior year. That’s a healthy growth rate, whereas double digit price increases are unhealthy. This rate is actually skewed up by the number of new luxury homes coming onto the market and the constant churn at the high end of the market.
7. Las Vegas Rent Prices Are On the Rise
During the Great Recession, Las Vegas went from a fifth of its residents renting to nearly two fifths. As the job market and personal credit improved, the area is back to having around 19% of residents rent. However, rents are on the rise. The average apartment rents for around a $1300 dollars, whereas the 2008 rental rate was around $900. You can of course charge much more for a three or four bedroom single family home than an apartment.
Unlike some areas, the Las Vegas housing market isn’t going to see a sharp decline in rents due to new construction. The vacancy rate for apartments was around 7% at the end of 2018. This rate is skewed by the large number of luxury apartments sitting vacant while affordable units are snapped up. Wages in the area, for example, haven’t risen in tandem with housing prices, pushing many to rent whatever properties they can find that fits their budget. This may prevent prices in the Las Vegas real estate market from going too high but won’t prevent them from rising along with the rate of inflation.
8. California’s Loss Is Nevada’s Gain
A $300,000 median price may be steep if you’re coming from the heartland where a mid-market home costs $150,000 to $200,000. However, tax refugees from California flooding into Nevada find that same house to be an outright bargain compared to the $600,000 price for a comparable property in Los Angeles. Southern Nevada is one of the cheaper metropolitan areas in the United States, and it is a fraction of the cost of living in California on nearly every front.
This explains why you see so many California license plates in Vegas and why it costs $120 to rent a moving truck to go from Vegas to San Francisco but $2000 to come to Las Vegas. As per the data by Lasvegasrealestate.org, the luxury home market has really expanded as 30% of buyers are moving from California to take advantage of Las Vegas’ low cost of living.
Even the most expensive custom homes from builders such as Blue Heron are found to be a bargain for out of state buyers and investors. Possibly are second largest market is retiree buyers in 55+ Communities and enjoying the weather, health care and activities that only Las Vegas can combine in one city at a value not matched in any major city anywhere in the USA.
9. Las Vegas Is Landlord Friendly
Unlike many other Western states, the Las Vegas real estate market is landlord friendly. It isn’t difficult to evict non-paying tenants from Las Vegas investment properties. In general, they have five days from the date rent is due to “cure” the problem or eviction can begin. The same time frame is used to correct issues like lease violations, after which the person can be evicted. After those five days, the case can go to courts, and these are landlord friendly.
Rulings typically arrive same day, after which point the tenant has one day to leave the premises. Landlords don’t have to pay interest on deposits. There are no limits on late fees, though the late fees due must be spelled out in the rental agreement. There is no payment grace period set by state law. All of this adds up to the Las Vegas real estate market being a paradise for landlords.
10. The Job Market of Las Vegas Attracts People
The Las Vegas job rate has ranged half a point to a full point above the national unemployment rate. However, that’s better than the unemployment rate in Arizona, Salinas, or the San Fernando Valley. And it is places like that sending de facto refugees to Las Vegas. The diverse economy of Las Vegas includes low skill but good paying jobs in entertainment, hospitality and services.
Every job killing regulation in California drives businesses to Oregon and Nevada, too, taking jobs with them. This explains why future job growth for the next ten years is expected to be nearly 40%, well over the 33% expected for the nation as a whole. A growing supply of jobs will propel demand for the Las Vegas housing market.
Investing in Las Vegas Real Estate or Not: The Conclusion
Maybe, you have done a bit of real estate investing in Las Vegas, NV but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. Should you consider Las Vegas real estate investment? Las Vegas is a shining beacon in the desert for those fleeing California or simply hope 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 the 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 actually a continuing trend as data from the US Census Bureau shows a net migration of 6.46% from 2012-2016. This earned the Las Vegas real estate market a spot among the best places that people were moving to in 2018. It’s clear the city will hold this title well into 2020 according to the forecast. A good cash flow from Las Vegas investment properties means the investment is, needless to say, profitable.
A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt. Therefore, finding a good Las Vegas real estate investment opportunity would be a key to your success. If you invest wisely in the Las Vegas real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate. You must also collaborate and learn from savvy investors who have retired early on in their lives by investing locally in the Las Vegas real estate market. As with any real estate purchase, act wisely. Evaluate the specifics of the Las Vegas housing market at the time you intend to purchase.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.
NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Las Vegas real estate in 2020. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.
Other Best Places To Invest in Real Estate in 2020
Apart from the Las Vegas real estate market, you can also invest in Grand Rapids, MI. Detroit may have once been the poster-child for Michigan, the truth today is that Grand Rapids is leading the way. Its diverse, growing economy is fostering a steadily growing population and strong housing market that are one of the best in the country for mid-sized cities. Different neighborhoods of Grand Rapids, MI have different aspects at play but for the most part you are able to have a quality house to rent out. And if you decide to flip it in the future, you are likely going to get a favorable return on investment with the property you purchase, no matter the location in the city.
A side benefit of the strong job market has been the growth of local incomes relative to rent; in 2016, the rent as a fraction of income ratio was nearly 18%. This means that rents in the Grand Rapids real estate market haven’t gone up as fast as incomes but can therefore go up faster. Median monthly rate hovers around $800 a month, but you’ll get far more for single family Grand Rapids rental homes. Median gross rent hit $900 in 2017. This is a far better rental rate than you’d see if you bought those Detroit homes on the market for $100 or the back taxes.
Another market that we suggest is the housing market in El Paso, TX. El Paso housing market is affordable with several large renter populations. Demographic growth and job growth are attracting residents to a market that can’t grow with demand, and that makes it an excellent opportunity for investors. The average pay is well below the American average income, but houses are cheaper, too. For example, El Paso was the only city to hit a Realtor.com list of most affordable metropolitan areas. However, that doesn’t mean there isn’t high demand for El Paso rental houses.
The median rent here is around $800 a month. You could see significant ROI on rental homes in premium areas, since an apartment rental in the better areas fetch around $1600 a month. For example, El Paso rental houses near the Mountain View command higher rates because they are home to military families and retired Army personnel who pay to be close to work and military medical facilities.
*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
Prices at a low, inventory of unsold
Renters locked out
Rent on the rise
Source of $1300 monthly rent rate
Market Prices, Trends & Forecasts