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 – October 2023
How is the housing market doing? According to the Southern Nevada report published by Summerlincommunities.com (Data by Las Vegas Realtors), in October 2023, there were 1,699 single-family houses that sold in October, marking a 6.7% decrease from September and a 1.5% decline from October 2022.
The median sales price of previously owned single-family homes experienced a slight dip, going from $450,000 in September to $449,000 in October, reflecting a 0.2% decrease from the prior month but still a 2% increase from the previous year. In October 2022, the median price was at $440,000, showcasing a positive trend over the years.
- October 2022 median price: $440,000
- October 2021 median price: $410,000
- October 2020 median price: $340,200
Market Update – Luxury Market
The luxury market saw 96 homes sold in October for $1 million and over, compared to 99 homes in September, indicating a 3-home decrease. The median sales price in the Luxury Market for October experienced a notable decrease, dropping to $1,300,000, whereas in September, it was $1,445,000, reflecting a $145,000 decrease in the median sales price.
Housing Supply in Southern Nevada
For October, there were a total of 2,332 new listings, showing a 4.7% decrease from September and a more significant 19.1% decrease from the prior year. In October 2022, there were 2,883 new listings, highlighting a difference of 551 more listings on the market in 2022 than in 2023. Additionally, a total of 4,213 single-family houses were listed without offers at the end of October, which is up 3.6% from the previous month but down 46.7% from the prior year.
- October 2022 single-family homes listed without offers: 7,906
October saw 2.5 months of inventory on the market, indicating an 11.1% increase from September but a substantial 45.9% decrease from the prior year. In October 2022, there were 4.6 months of inventory, underscoring the dynamic changes in the market over the past year. Notably, 67.2% of closings for October occurred within 30 days or less, showcasing a resilient and fast-paced market.
- October 2022 months of inventory: 4.6 months
- October 2022 homes on the market 30 days or less: 53.7%
Market Update – Interest Rates
Interest rates in October reached their highest level in 23 years, hitting 7.5% for a 30-year fixed rate. Despite this recent peak, rates have now cooled, providing potential homebuyers with a glimpse of stability in the mortgage market.
This overview of the Las Vegas housing market in October 2023 reveals dynamic shifts in sales, pricing, and inventory, painting a vivid picture of the current real estate landscape in Southern Nevada.
Are Home Prices Dropping in Las Vegas?
As of October 2023, the Las Vegas housing market has experienced a slight dip in home prices. The median sales price of previously owned single-family homes decreased from $450,000 in September to $449,000 in October, reflecting a 0.2% decrease from the prior month. However, it's essential to note that the median price is still up 2% from the previous year, indicating overall stability with some minor fluctuations.
Is It a Buyer's or Seller's Housing Market?
The current state of the Las Vegas housing market suggests a nuanced scenario for both buyers and sellers. With a 6.7% decrease in the number of single-family houses sold in October compared to September, there may be a slightly more favorable environment for buyers. However, the 67.2% of closings for October occurring within 30 days or less indicates a competitive and fast-paced market, which could lean towards a seller's advantage. Prospective buyers should carefully consider these factors and work with real estate professionals to navigate the evolving market conditions.
Will the Housing Market Crash?
Based on the data available for October 2023, there is no indication of an imminent housing market crash in Las Vegas. While there have been fluctuations in the number of homes sold and a modest decrease in median sales prices, the market remains resilient. The 2.5 months of inventory on the market in October reflects a dynamic but relatively stable environment. However, market conditions can change, and it's crucial to monitor trends and consult with real estate experts for the most up-to-date insights.
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
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
- 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.