Las Vegas Housing Prices Continue Climb as Out-of-State Money, Construction Companies Pour into Region
LAS VEGAS, NV – Housing statistics for the Southern Nevada region for July of 2017 have come in, and as usual, the summer heat of the Las Vegas desert is only matched or exceeded by the hot market of local real estate. Following the housing bubble burst of the mid-2000’s followed by a decade of dormancy, the housing and especially the rental market in Nevada is skyrocketing upward, leaving big money men – especially those from out-of-state – scrambling to get in on the action.
According to the most recent Greater Las Vegas Association of REALTOR (GLVAR) report, July 2017 saw the median price of existing single-family homes sold during July increase to $260,000, which represents a 10.2 percent increase compared to the same period in 2016. Meanwhile, the median price of local condos and town-homes sold in July jumped to $138,000, an increase of 20 percent from the previous July. And – as it has been for months and months now – GLVAR’s President, David J. Tina, noted that the demand for housing continues to exceed the current supply; Southern Nevada currently has less than a two-month supply of existing homes available for sale, whereas a balanced market typically has a six-month supply. In such an environment, prices for any dwelling will continue to rise until equilibrium between supply and demand is established, which in Vegas’ case could take some time.
Meanwhile, investment opportunities galore continue to make themselves available to those who are willing to sink the funds into the region, and lately the most money has actually been flowing in from banks, lenders, and investors outside the confines of Nevada. Part of the cause for this is the fact that many lenders within Nevada, hit hard by the recession, are still reeling from its effects; loathe to dole out cash after having been burned by numerous loans that went belly-up when the housing market crumbled in the mid-2000’s, many regional and national banks based outside of the Las Vegas Valley have been more aggressive than the local banks, according to reports. Stricter lending laws within Nevada have also contributed to increased reliance of contractors and construction companies on out-of-state lenders, who have fewer hurdles to clear.
That money is sorely needed if new housing is to be completed in a timely fashion to satisfy the near-insatiable demand on the part of prospective tenants and families drawn to the Southern Nevada region in hopes of taking advantage of the new job opportunities in the area and a slowly-but-surely growing local economy. But in the meantime, buyers are scrambling for any piece of real estate they can get their hands on; by the end of July, GLVAR reported a mere 4,995 single-family homes currently listed for sale on the open market without an offer, which represents a 31.9 percent decrease from July of 2016. And when it comes to condos and town-homes, there an even bigger decrease from July of 2016, with only 625 offer-free properties available on the open market for buyers to choose from. Homes sales have continued to soar, as 3,798 homes, condos and town-homes were sold in July, representing 351 additional sales over 2016. Overall, 2017 is outpacing 2016, a year that saw 41,720 properties in total sold in the Southern Nevada region.
Needless to say, the investment opportunities continue to flourish in Las Vegas and its surrounding areas, and anyone with the business savvy and access to sufficient funding is sure to make a killing if they get in on the action as soon as possible. Looking for information on investment properties in the area? Give us a call at 702.376.7379 so we can answer any questions you may have.