Category Archive : Market Updates

LAS VEGAS, NV – After the so-called pop of the housing bubble in the mid-2000’s and subsequent crash of the real estate market, the last year or so has seen a resurgence the likes of which have not been witnessed in quite some time, with a spike in the local Southern Nevada economy fueled by new businesses and jobs taking up residence in the region, in addition to rapidly-rising demand for housing and rental units. As always, demand sets ever-increasing value and prices; according to recently-published reports, property prices continued to climb as Las Vegas moves into a very real house shortage.

The report reveals that 4,297 properties – consisting of condominiums, townhomes, and single family homes – sold for premium prices on the open Las Vegas market during May of 2017. The median price range of houses that sold in the region during that month was $250,000; this represents a 3.3 percent increase from April ($249,000) and an increase of 13.3 percent from the same period of time one year ago.

The rise in prices and the heavy activity on the sales front, of course, only spells good tidings for the recovery of the Las Vegas economy and real estate market, especially if you’re an investor; however, it can also represent a significant hurdle for those on a budget looking to purchase a home for the first time in order to start a family. As an example, a recent article chronicled the efforts of Kierra Jemison, a single mother of four children, as she attempted to navigate the Las Vegas housing landscape for an affordable home for her family after being forced out of a previous rental. With a very strict budget – Jemison is looking for something with four bedrooms to the tune of $200,000 – she set out with a sense of hopeful anticipation, but soon found herself frustrated and demoralized after 30 house tours and five offers saw her no closer to her goal, as she found herself outbid at every turn in an incredibly competitive marketplace.

Very quickly, prospective first-time homeowners in Southern Nevada are finding it harder and harder to find a property under the $300,000 mark. New construction, however, looks to address the lack of housing and rental options; Lake Las Vegas, up until recently, was considered a lackluster investment in terms of real estate, yet it has recently seen a number of housing projects in the works, with as many as six developments stated to be completed and entered into the marketplace within the next year. However, while this will certainly help to address the scarcity of real estate options – Las Vegas currently has a two-month supply of homes on the market, whereas a balanced market typically has a six-month supply – the subsequent prices of these new developments stand to mirror the current marketplace. For example, one of the Lake Las Vegas developments in the works – CalAtlantic Homes Regatta Pointe – will feature homes in the mid-$300,000 range.

In the meantime, prospective homeowners on a budget, such as Kierra Jemison, will have to continue to fight it out with other like-minded individuals in a marketplace that is currently seeing explosive growth and expansion; however, with big-money investors in droves setting up shop in the region and real estate prices continuing to climb ever-higher, competition for affordable housing options will remain fierce.

If you’re looking to purchase a home here in the Las Vegas Valley, please feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – When the largest alternative investment firm in the world decides that your city is ripe for sinking their dollars into on a vast scale, it all but cements you as a hot property, and for all intents and purposes, that’s just what Las Vegas has become in recent months.

The Blackstone Group is an American multinational private equity, alternative asset management, and financial services firm based in New York City. It specializes in private equity, credit, and hedge fund investment strategies, and it has recently turned its sights on the Southern Nevada region and the current real estate surge that is gripping the local economy.

The prices of single-family dwellings have gone up nearly nine percent since February 2016, with the average home currently going for approximately $240,000. 2,249 single-family homes were sold in the Southern Nevada area in February, an increase of 6.5 percent from one year ago; and with that steadily increasing demand also comes increasing prices; in February of 2012, the average price of a single-family home in the Las Vegas was about $121,000, but in 2017 that same home will net a seller $240,000. Not only has the Las Vegas real estate market stabilized since the burst of the housing bubble of the mid-2000’s, but it clearly is on the comeback trail in a very big way…and investors, such as Blackstone, are sitting up and taking notice.

The Blackstone Group recently signed on the dotted line to acquire ownership of three Las Vegas Valley apartment buildings – primarily from developer Martin Egbert of Nevada West Partners – to the tune of $170 million. The properties included in the deal are Dream apartment complex in Henderson as well as Union Apartments and SW Apartments, both situated in Vegas’ southwest valley. All told, the deal netted Blackstone ownership of 972 individual living units, and when you do the math, that comes out to approximately $174,900 apiece; in contrast, apartment units in the region were going for about $96,700 each one year ago at about this time, which is yet another example of the skyrocketing real estate market in Las Vegas these days.

This move represents a distinct change of pace from the investment giant; previously, The Blackstone Group was known for their budget-conscious nature when it came to Las Vegas properties, purchasing over 900 homes in Southern Nevada at rock bottom prices after the housing crash, promptly turning them into rentals servicing both Millennials – who typically are either unwilling or unable to spend the money needed into buying a home – and tourists to the area. This strategy, while not immediately resulting in tidy profits, has finally come to fruition in the last year, as the prices of rentals – both homes and apartments – have jumped steadily in 2017, with a typical rent for a three-bedroom home rising up three percent in the first three months of the current year to an average monthly price of $1,328, and according to reports, apartment prices went up four percent, with one-bedroom apartments now typically costing $890 on the open market.

Clearly, places to live in Las Vegas – home purchases or rental properties of different types – are in ever-growing demand and not showing any signs of slowing down; even powerful business tycoons of Wall Street are opening up their wallets to degrees unprecedented in recent years to get in on the action, and as a result, investors of all walks of life are seeing dividends on their efforts. Las Vegas is, quite literally and figuratively, a hot property right now, and anyone looking to cash-in is best advised to get moving while they can.

If you’re looking to invest here in the Las Vegas Valley, please feel free to give us a call at 702.376.7379 so we can answer any questions you may have.

LAS VEGAS, NV – Before the housing bubble burst (mid-2000’s), the idea of flipping a property, especially in markets such as Las Vegas,  was as appealing to real estate investors as the gold rush to old-time prospectors heading to America’s frontier in the 1800’s. Both groups saw their respective purpose as a way to potentially get rich quick, but much like the prospector who struck out to the west – and failed to strike gold, more often than not, the recession dashed the hopes of more than one prospective house flipper looking to turn a fast buck.

However, as the Vegas housing market experiences resurgence in the past year – homes and rental properties have been growing exponentially in both demand and price when compared to 2016, and this trend shows no signs of slowing down – it appears that flipping has come back into vogue, as housing options for families in the Southern Nevada region are sorely outstripped by the number available on the open market, experts say. Therefore, an industrious investor with little money and some elbow grease is in position to swoop in on property which might be considered “less desirable,” – fix it up, and find that it is suddenly a hot ticket.

Flipping in Las Vegas has jumped in terms of profitability in the first quarter of 2017; when judged against 2016’s first quarter, experts report a 29 percent increase, which equates to approximately $51,000 in additional profit from flipping; this is also the single biggest increase in profitability since 2005, the period just before the mid-2000’s housing bubble burst. With the jump in prices, competition for lower-priced homes – especially fixer-uppers – has risen to near ecstatic levels.

But it’s not just the resurrection of the housing market that has real estate entrepreneurs racing to renovate; entertainment media has drawn attention to the benefits of investing in Las Vegas homes as well, and when Hollywood takes notice, so does the public. For example, HGTV recently announced the renewal of its breakout hit television show “Flip or Flop Las Vegas” for a second season after its first season displayed very strong ratings. The show, which debuted in April and chronicles the exploits of real estate agents/designers Bristol and Aubrey Marunde as they buy, rehab, and sell off local area properties, has attracted a whopping 12.5 million viewers, according to HGTV.

These factors have contributed in no small part to Las Vegas being currently ranked as the number two place in America to flip properties, according to yet another real estate reality star- Scott Yancey of the reality show “Flipping Vegas,” who says that the goal of any successful flip is to buy low, renovate fast, and get the property back on the market as soon as humanly possible. He cites RealtyTrac, a real estate information company and online marketplace, as evidence of how Vegas is currently a hotbed of flipping activity in terms of gross profits, noting that average home in the region typically sells for $134,000, and upon being successfully flipped that same home brings in an average of approximately $204,000, a gain of 53 percent; that certainly represents a significant return for an investor.

Flipping has been around for decades, and after a period of dormancy in the Southern Nevada area, it’s set to rear its head once again for ambitious real estate investors willing to sink in some dough and some hard work; the payoff promises to be more than worth the effort.

LAS VEGAS, NV – With the recent real estate explosion taking place in Southern Nevada in the past year, it’s not only homes that are selling at a record pace as needs begin to outpace supply; rental properties are also showing a dramatic surge in recent months, as visitors and tourists are indeed scrambling to take whatever they can get their hands on. It’s a phenomena that’s becoming to acute that it’s actually gotten the attention of local government, which has recently started looking into tightening the regulations that oversee the rental industry in Las Vegas.

A great many homes in Las Vegas are actually owned by investors as rentals – which is contributing in part to the recent ongoing property shortage for prospective homeowners in the area – and apparently the allure of staying in a home away from home is turning out to be quite appealing to tourists; in 2016, over 340,000 visitors to the Southern Nevada region rented houses and apartments as opposed to staying at a hotel, and while providing a healthy return on the investments of property owners, some neighbors aren’t too keen about sharing their space with random out-of-towners. While many members of the tourist trade are positive additions to the Las Vegas scene, a few random party-goers have raised the ire of residents, enough so that Vegas officials have considered a new bill that would address rental properties in an attempt to assuage the concerns of area locals.

The Las Vegas city council has recently proposed new legislation that would directly target short-term rentals; among the rules that would go into effect if the bill passes would be the requirement of a special-use permit for an individual or company to operate a home or apartment rental, which would give both the city and residents living locally to any potential rental more say-so into who could and should be allowed to operate within the area. Landlords would have 365 days to procure a permit – properties with two bedrooms or less would be exempt – and at least $500,000 in liability insurance coverage would be needed. A legitimate business license number would need to be prominently displayed on all forms of advertising, from billboards to Internet ads.

The stated goal of this legislature, were it to pass, is to ensure that landlords with a history of being hands-off when it comes to their tenants would have to adhere more closely to city ordinances, ensuring a better life for neighboring families of rentals and rental guests alike. City officials have had to field a number of complaints from residents in recent years about so-called “party houses” with loud music, litter, and other disruptions, which simply makes things harder to legitimate renters who are just trying to run an honest business while respecting their neighbors.

The new ordinance, sponsored by city Councilwoman Lois Tarkanian, is currently being worked on with public input from both rental owners and residents alike. A vote date is not currently yet set.

A small percentage of Vegas homes that are used as rentals are done so illegally, with those caught facing fines up to $1,000. Many people who operate rental homes in the area do so not just for profit, but to help them make ends meet in an economy that, while improving by leaps and bounds, is still tough on some residents on occasion. Other rental homes are owned by large Wall Street firms, which were bought up in droves specifically as rental properties, aimed both at tourists and millennials saddled with student debt who are unable to afford to buy a home of their own; already, these firms are seeing a healthy return and are even actively building more houses where they can in the region to serve as additional rental properties.

LAS VEGAS, NV – After several abortive attempts at starting construction of the new Resorts World Hotel and Casino of Las Vegas – it was originally slated to open first in 2016 and then in 2019, with delays being attributed to re-designs and other factors, ground is finally stated to be broken on the $4 billion dollar project this year. The resort, flaunted as the first of its kind constructed from scratch in Southern Nevada in nearly ten years, has a grand opening target of 2020, and its construction promises to create a huge influx of both money and jobs into the area, as well as a continued and pronounced economic benefit once it finally opens its doors for business.

Being built on the former land where the fabled Stardust Hotel and Casino once stood, Resorts World – featuring lush, modern, Asian-themed architecture and elements – is being envisioned as a behemoth of a resort, encompassing a 3,000 room hotel accompanied by restaurants, shops, theaters and 100,000 square feet of space dedicated completely to gaming, including baccarat, slot machines and more. The hotel is planned to take the form of two separate towers- one with 1,400 rooms and the other with 1,800, with the ability to expand more in the future if needed. One only has to take a look at the scope of its current East Coast-based cousin – Resorts World New York – to know that Genting Group, Resorts World’s Malaysia-based developer who purchased the 90 acre lot in 2013 where the resort will be built, likes to live large when it comes to their developments.

The anticipated benefits that the construction and opening of Resorts World will bring to Las Vegas – already experiencing a new boom of real estate activity after riding out the harsh housing bubble burst of the late 2000’s – are numerous. The third-quarter 2017 building phase will initially employ at least 1,000 construction workers, with several thousand working on the project once it’s up and running at full speed leading up to its 2020 opening date. Once open, Resort World will hire 3,000 union-based employees to run and operate its facilities, in addition to numerous other incidental jobs where needed.

For a time, the likelihood of Resorts World actually getting built seemed to be growing more and more unlikely by the day; the initial groundbreaking ceremony had taken place in May of 2015, and progress on the project had limped along slowly since then due to several factors, among them a shortage of needed construction equipment such as cranes and financial issues faced by Genting Group. However, with the announcement of Resorts World’s 2020 opening date – not to mention the acquisition of the needed construction cranes, which newly-appointed Resorts World Las Vegas president Edward Farrell noted should be in-place within the next 90 days, prior to the official kick-off of construction.

With the announcement that work will finally commence on the long-stagnating Resorts World and Hotel, Las Vegas is set to receive yet another boon to its local economy that will only serve to support and bolster the rapidly-recovering real estate scene. Coupled with the 2020 arrival of the newly-rechristened Las Vegas Raiders NFL professional football team – due to be the recipients of a new, state-of-the-art, locally-based domed stadium that’s sure to be an epicenter for tourism – as well as a housing and rental market that has shown strong, steady gains and price increases in the last year, Resorts World is yet another signal that Las Vegas is truly on the comeback trail after successfully fighting an uphill battle to fiscal recovery.

Is Zillow Getting Into the Las Vegas Home Selling Business With ‘Instant Offers’?

It was just announced that Zillow launched a pilot program called ‘Instant Offers’ for home sellers in Las Vegas and Orlando. This programs allows for investors to submit an all cash offer directly to the seller through Zillow’s platform without the need of a real estate agent. In an effort to save face with real estate agents, Zillow will have its participating Premier Agents submit a comparative market analysis with the investor’s offer so the seller can decide if they want to accept the offer and close quickly, accept the offer and have the transaction managed by a real estate agent or hire a local real estate agent to list and sell their property.

Zillow will not be charging for this service for obvious reasons. If they were to charge for this service, Nevada law would require Zillow to be licensed as a real estate broker due to the fact they would be receiving compensation for selling real estate.

Zillow acquired DotLoop, a real estate transaction system, back in 2015 and ‘Instant Offers’ will utilize Dotloop’s transaction system to streamline the real estate transaction. I know I, like many other real estate agents wondered why Zillow would acquire an online real estate transaction system when they claim their platform is designed to connect buyers and sellers with real estate agents.

If the pilot program, ‘Instant Offers’ is successful, what’s stopping Zillow from becoming a real estate brokerage and taking a percentage of each sale? This is why I believe it’s just a matter of time before Zillow attempts to replace the real estate agent based on the following facts:

• Zillow dominates the online market share with Zillow.com, Trulia.com and RealEstate.com
• Zillow is now testing ‘Instant Offers’ with 15 Investors
• ‘Instant Offers’ will be streamlined with the use of DotLoop’s real estate transaction system
• Zillow can provide the home seller with a Zestimate instead of a comparative market analysis from a real estate agent.

I’m not the only one that believes Zillow is trying to replace real estate agents, Ben Kinney stated the following:

Zillow launches instant offers to potential sellers eliminating the agent for a 9% fee. Selling the home off the market with out the full exposure and opportunity to get the highest and best offer for your home. If this isn’t one step closer to all my agent friends and their families losing their careers and jobs and my clients not getting fair market value I don’t know what is.

I’m hoping with Zillow’s ‘Instant Offers’ announcement, real estate agents will now see that paying Zillow for leads is allowing Zillow to grow their market share, finance acquisitions and the development of new technology that will ultimately lead to the real estate agent being replaced.

LAS VEGAS, NV – Hitching themselves to a trend in Southern Nevada as a whole in recent months, North Las Vegas has begun an effort to revitalize large swaths of its real estate, especially in a northern area that had previously been plagued with drug dealing and violent crimes. The efforts will concentrate on development with a focus on senior and public housing options; in addition, major out-of-state businesses are setting up shop in the area, providing an influx of jobs and economic growth.

The North Las Vegas City Council recently approved a sweeping two-year development plan that would drastically alter the landscape of the region, with the goal being to attract retail and other businesses in order to spur the creation of jobs, kick off the local economy, and take advantage of the shortage of housing options in Las Vegas. A public 120-unit apartment building aimed at senior citizens – a project projected to cost a staggering $22 million –  is already underway on a 2.7 acre patch of land; this development will take the place of the Rose Garden, a complex slated for demolition that is situated west of North Las Vegas’ downtown area.

In addition, the Buena Vista – an apartment complex that was infamous for being the epicenter of drug dealing and violent crimes in the area – was purchased by the City of North Las Vegas approximately three years ago and subsequently razed to the ground, and plans are in the works that could see a variety of projects making use of the land, from safe, affordable housing options to retail. Assistance in North Las Vegas’ redevelopment efforts is being provided by the U.S. Department of Housing and Urban Development, which had previously bestowed a grant upon the city to aid in their outreach to the community as to how to proceed with their efforts.

Clearly, the shifting tide in North Las Vegas has companies sitting up and taking notice; chief among them being Amazon, the online retail giant, which is slated to open a fulfillment center in the area. The center – Amazon’s second in North Vegas – is already under construction; estimated to come in at 800,000 square feet and to ultimately employ over 1,000 workers and office personnel, hiring has already commenced on the initial 500 that will staff the complex while it gets ready for operation.

Other retailers are also clamoring to get a foothold in North Las Vegas due to the earnest efforts to develop it into a destination friendly to business and housing options; famed La Bonita supermarket will be opening a 55,000 square-foot establishment in Fiesta Plaza in downtown North Las Vegas. The lease, described as “long-term,” obviously signifies the confidence of La Bonita in the local economy to support a serious commitment in the community on behalf of businesses.

Offering a helping hand in an effort to expedite further business growth in the region, the City Council of North Las Vegas is taking steps to speed up the process of applying for – and receiving – building and construction permits. The plan consists of a self-certification program that architects and engineers can participate in; once certified via eight hours of classes provided at the City Hall, certified architects and engineers who submit their plans for audit will find the process greatly speeded up, reducing construction timelines and saving developers money.

These are but a few of the many initiatives in effect that are seeking to turn around the fortunes of North Las Vegas in an effort to turn it into a destination for businesses and families to live, work, and prosper, taking advantage of the real estate and economic boom that is currently taking root in Southern Nevada as whole.

LAS VEGAS, NV – With the announcement of the move of the Oakland Raiders from their current eponymous home to Las Vegas come the NFL season of 2020, a firestorm of curiosity has centered on not only where their home stadium would be built, but who would be building it and when. And, in a rash of recent announcements by the Raiders management team, those questions have finally been answered.

The Raiders organization has announced that it will be employing the services of Mortenson Construction and McCarthy Building Companies will handle the construction duties involved in bringing the Raiders’ proposed Las Vegas Stadium – currently its working name – to life. The structure, designed by Manica Architecture – the Kansas firm that supplied initial concept renderings of the stadium and property when this project was still in its proposal stage – is slated to contain 65,000 seats and boasts a price tag of $1.9 billion with an anticipated opening date of 2020, according to reports.

Mortenson Construction, based out of Henderson, NV, had a long list of sporting venue construction to its name; most recently, they completed work on U.S. Bank Stadium for the Minnesota Vikings in their hometown of Kansas City, and did so a full month-and-a-half ahead of their originally scheduled completion date. Other construction credits to Mortenson’s name include Major League Baseball team Atlanta Braves’ SunTrust Park in Georgia, and the currently in-progress work on National Basketball Association team the Milwaukee Bucks’ Wisconsin Entertainment and Sports Center.

Mortenson will serve as the on-site construction team on the Raiders project, whereas it is currently unknown as of press time what role McCarthy Building Companies – headquartered in Henderson, NV – will be serving.

Las Vegas Stadium is the working name for the domed stadium, which will not only serve as the home base for the re-christened Las Vegas Raiders, but of the UNLV Rebels football team from the University of Nevada, Las Vegas as well. It will be located about 62 acres west of Mandalay Bay at Russell Road and Hacienda Avenue, just west of Interstate 15.

While the main goal stated by the Raiders Organization is to complete their move from Oakland to Las Vegas in time for the 2020 NFL season – and with a company with the reputation that Mortenson Construction has at the helm, this seems quite the realistic goal – the Raiders must still finalize a lease agreement with the Las Vegas Stadium Authority by the end of May, 2017; if the two parties are unable to come to terms on the arrangement, the next chance to do so will not come until October of this year. If that were to occur, it would most likely push back the start of the Raiders in Las Vegas to the 2021 NFL season, something that neither party most likely wants to happen. In addition, environmental and traffic impact studies must be preformed and pass muster before local government.

The Las Vegas Stadium is anticipated to provide a boost to the local economy, including jobs (and corresponding wages), tourism, and especially the real estate market, which has already been seeing a steady and constant increase in prosperity recently since the housing bubble pop of the mid – 2000’s. Home and rental prices have been climbing on a regular basis, and with the much-anticipated arrival of the Raiders on the horizon, real estate is looking to enter a legitimate boom period for the foreseeable future.

On March 27, 2017, NFL team owners voted nearly unanimously to approve the Raiders’ application to relocate from Oakland to Las Vegas, Nevada; the Raiders will remain in Oakland through 2019; previously, the team had moved from Oakland to Los Angeles and back again.

LAS VEGAS, NV – After Las Vegas has endured the effects of a burst housing bubble in the mid-2000’s – a phenomena that occurred nationwide but was felt acutely in the Southern Nevada region more than most – the real estate market in the midst of a rebound that is equally as impressive as the previous decline was bad. The economy is rebounding and jobs are coming back; as a result, housing options are in big demand, supply is tight, and prices are steadily climbing, and, due to this, the rental market is displaying a similar surge as well, as prospective homeowners are being forced to settle, albeit temporarily, for renting one.

A three bedroom home in Las Vegas, in terms of rent, has jumped up in the first three months of 2017 three percent to an average monthly price of $1,328, according to reports. With the summer season fast approaching, prices are expected to climb further as per the norm during that time of the year. The rate of vacancy in the Vegas region – both in terms of homes for sale and rental properties – dropped  to 4.16 percent in the closing months of 2016.

But in addition to an economy on the mend and the subsequent influx of businesses and jobs that are fueling this home-selling trend – couple with a smaller-than-average supply of homes for sale to being within Southern Nevada, which is further driving up demand and subsequently prices –  another reason why the rental market is booming in Las Vegas is that, during a small swell of the real estate market that occurred a few years ago – one that unlike currently, ultimately went nowhere – investors purchased a large number of properties with the intention of renting them out to vacationers, business travelers, and so on.

This has contributed, in part, to the current housing shortage, as many homes that would normally be on the market for prospective buyers are sitting in a rental limbo of sorts. However, with dwellings in short supply, the gamble many of these investors made several years ago is starting to pay off, as residents who are unable to secure a house to buy are settling for the next best thing- renting one instead.

The so-called “Raiders Effect” is also being cited as a reason for the shortage of housing options in Las Vegas; with the area now boasting not only a professional hockey team, but the arrival within the next two years of one of the National Football League’s most well-known teams in the Oakland Raiders – who will be taking up residence in a brand-new 65,000 seat state-of-the-art stadium – industry is being attracted to the area, and with them, people relocating in hopes of a fresh start and gainful employment. And a few die-hard Raiders fans are even moving to Las Vegas to be near the home base of their favorite team, believe it or not.

It isn’t just home rentals that are steadily climbing due to the cutthroat housing market in Las Vegas; apartment rentals are in high demand as well, and like anything else that people are clamoring for, when demand goes up, prices are sure to follow. According to reports, apartment prices went up four percent in the last year, with the average one-bedroom apartment fetching $890 on the open market; if you’re looking for more space, a two bedroom abode will set you back $1050 on average.

Again, lack of supply is cited as a factor in these prices as well, with almost anything considered to be a living space going for a premium in the current Las Vegas marketplace; a trend that shows no sign whatsoever of slowing down or abating from its upwards climb anytime soon.

LAS VEGAS, NV – There’s no doubt about it- real estate in Las Vegas, Nevada, is on a slow but powerfully non-stop climb after sinking into the financial mire in the mid-2000’s. Records are being broken in terms of both prices and sales totals, and everywhere you drive, new developments are gracing the once-barren landscape. In addition, projects that had stalled or been outright abandoned are once again pushing forward in this new, more positive economic climate. While things aren’t quite at the booming levels they are right before markets crash, they are nonetheless very positive and getting better every day.

But for those who are looking to jump aboard this freight train to the top and are feeling some trepidation in regards to it all tumbling down again in the near future, experts are predicting – using the strongest of verbiage – that this isn’t a likely outcome.

Within the last year, the real estate market in Las Vegas has surged in leaps and bounds; 2,249 single-family homes were sold in the Las Vegas area in February, an increase of 6.5 percent from February 2016, and the average single-family home has gone up nearly nine percent, with the average price currently coming in at approximately $240,000.

And of course, these properties aren’t being simply given away, so there’s been a corresponding increase in the demand for mortgages Southern Nevada as well; continuing a three-year trend of growth, home purchase loans jumped up an additional 8.5 percent in 2016 over the previous year, equating to a total of 36,130 mortgages . And all that increasing demand has, of course, in turn driven up prices; in 2017, the average price of a single-family dwelling is coming in at $240,000, which represents an increase of $119,000 for the same home during the very same period in 2012.

In a recent interview, Home Builders Research founder Dennis Smith notes that the demand in Vegas for new homes is very strong, with one of the main reasons for that being fear of rising interested rates; as of now, many people are recognizing a housing boom and have decided to finally get off the pot, so to speak. After all, when interest rates go up, prices quickly follow. In addition, he said, is the limited supply of new homes in the area, which is also serving to inflate demand. However, unlike with a limited trend in the area a few years ago, Smith notes that this current drive is not investor-driven, but homeowner-driven, which suggests far more stability and optimism in the surrounding economy and job market.

It’s this stability, combined with moderate yet steady growth based on legitimate consumer need, that Smith says offsets any possibility of the Las  Vegas real estate market growing too much, too soon and creating another bubble that is sure to burst; instead, he notes, it’s ensuring a strong, profitable tomorrow for anyone getting into Southern Nevada real estate, as well as a good place for families to take a shot at the American Dream, with industry – and, along with it, jobs – quickly filtering into the region.

“Is Vegas going to grow? Yes. Do they want it to grow? I would certainly hope so. If not, then go live out in the desert. But is there a bubble or too much construction? I don’t understand why people would suggest there’s too much construction when the demand shows there isn’t,” he said. “How can anyone convince me that 8,000 sales a year is a bubble? We’ve had 30,000 – 40,000 permits a year; that was a bubble. But before that, in the 1990s and early 2000s, we were doing 20,000 permits and closings a year, and everyone was marveling how wonderful everything was in Las Vegas.”

LAS VEGAS, NV – Spring is here, and if March figures are any indication, the upcoming months leading into the summer season are sure to continue the upward trend of availability – or lack thereof – of homes in the Las Vegas real estate market.

Southern Nevada’s supply of available homes has been shrinking for months now, going hand-in-hand with a steady increase in prices as options continue to dry up for prospective homeowners in the region. According to recently-released statistics, approximately 11,000 single-family homes were available on the market at the tail-end of March 2017, which represents a decrease of 17 percent over the same point in 2016. Meanwhile, sales of available homes on the market have increased nine percent this past March compared to 12 months ago, resulting in a highly-competitive marketplace for both buyers and sellers, with homes on the average selling at the fastest rate since official tracking begun in 2010.

A community experiencing growth always represents an attractive prospect for people looking for a fresh start, hence the recent influx of transplants from other areas of the country and the subsequent reduction in the amount of housing options for them as dwellings are gobbled up. As an example of how fast homes are selling in the region, your average single-family dwelling would typically go under contract in 60 days one year ago; today, that number has gone down to 49 days and continues to shrink.

As with a growth in demand comes growth in prices; the median price of a single-family home sold in the Las Vegas area has jumped up 7.5 percent in March 2017 from one year ago, with the average price clocking in at approximately $273,000.

According to real estate professionals, there’s plenty of buyers out there, but fewer and fewer homes to accommodate them; this, reports indicate, are a result of economic improvements in Nevada as a whole and Las Vegas in particular, with new businesses, attractions and even sporting teams (in the form of the Oakland Raiders NFL team) setting up shop in the area, and with them are coming jobs for local area residents.

However, with Vegas’ growing reputation as a real estate market on the rise come complications as well, with homeowners looking to sell believing they are sitting on a gold mine and demanding top dollar for their property; experts report that if prices were lowered closer to an accurate fair-market value – as opposed to prices inflated by speculative market growth and a recent spike in demand – that sales would be even more brisk. But as a territory hit especially hard by the real estate bubble burst several years ago, sellers looking to cash in on a market that is finally booming is just a reality that cannot be denied.

Another factor that is eating into the total number of homes available to buyers in the Las Vegas area are due to investors that purchased a large number of homes, only to turn around and offer them as rental-only properties to tourists and vacationers; as of March 2017, few of those investors are looking to sell those homes, which again drives up demand for the remaining properties on the market.

Overall, however, March 2017 has continued the trend of a shrinking real estate market and demand (and, as a result, prices) for property in Southern Nevada with no signs of things slowly down.

If you are considering relocating in or around the Las Vegas area, which clearly is experiencing huge growth and a booming job market,  give us a call at 702.376.7379 so we can answer any real estate and home relocation questions you may have.

LAS VEGAS, NV – If the numbers aren’t enough to convince you that Las Vegas, Nevada is a fast rising hotbed of real estate activity – last month’s median home price moved up 10 percent to $242,000 from the same period in March of 2016, and five years ago that number was a mere $123,000 – Hollywood has also taken note.

HGTV’s Flip of Flop, one of reality television’s hottest programs, is offering its very first spin-off with a Las Vegas-centric theme; entitled Flip or Flop Vegas and starring local residents Bristol and Aubrey Marunde, its very existence displays a firm belief in the high activity of the Southern Nevada real estate market by HGTV studio executives, as typically they are loathe to sign off on a show that concentrates on a single region unless they feel they have a certified hit on their hands.

Flip or Flop is a television series airing on HGTV hosted by real estate agents and real-life husband and wife Tarek and Christina El Moussa. First airing in 2013, the show, which chronicles the activities of the two as they “flip” homes; in other words, they buy distressed properties and renovate them while a camera crew captures the process from beginning to end. The popularity of the show is readily apparent by the fact that, to date, it has filmed 86 episodes through 8 seasons. As is the case with successful television, eventually talk of a spin-off came to bear, and on April 6, 2017, Flip or Flop Vegas premiered on HGTV starring Bristol Marunde, a Vegas-based real estate expert and designer, and her husband Bristol, a designer, contractor, and former Mixed Martial Artist who has competed in the UFC and Strikeforce.

Flip or Flop Vegas takes the same premise as its progenitor; the Marundes are featured in each weekly episode dealing with the trials and tribulations of flipping homes in Las Vegas; the real estate market in the Vegas area is ripe for such a show, with the current demand for housing options far outstripping supply, a state of affairs that is causing prices to continuously make gains. Indeed, Las Vegas is fast becoming a seller’s market, and each week viewers can tune in to HGTV and see it all for themselves.

Producers from HGTV first became aware of the exploits of Bristol and Aubrey Marunde when they discovered videos clips on the couple’s Instagram account of their Vegas home flipping achievements; it wasn’t long before the Marundes were contacted and eventually signed to a contract for a 13-episode season Flip or Flop spin-off focusing exclusively on the Las Vegas market, and if ratings are any indication, HGTV has yet another certified hit on their hands.

As for the advantages of flipping homes in the Las Vegas area, Aubrey Marunde recently said in an interview that the high, high demand for homes in Southern Nevada in general lends itself to a much more intensive flipping experience than in the rest of the United States, both in terms of the need for speed when it comes to identifying and buying prospective properties as well as the amount of time it takes to actually sell a home once you’ve finished renovating it (hint: in Las Vegas, they go fast).

“Vegas is a very, very fast-paced market. There are so many opportunities and they present themselves daily. You have to be ready to jump on them, because if you don’t, somebody else is going to,” she said. “So our fast-paced market here is much different than other places around the country and I think that people watching are going to see that. Our properties sell in hours, rather than days or months here. That’s very unique to the show.”

Flip or Flop Vegas currently airs on HGTV on Thursdays at 9 p.m.

Considering relocating in or around the Las Vegas area? Give us a call at 702.376.7379 so we can answer any real estate and home relocation questions you may have.