Las Vegas homes prices in April were up 3.3 percent over last year despite economic shutdown disruptions associated with COVID-19, according to the Las Vegas Realtors industry association and reported in the Las Vegas Review Journal.
“The data supports essential elements that point to the continued strength of Las Vegas real estate as a good investment,” said Uri Vaknin, a partner with KRE, which owns Juhl and One Las Vegas, two of the city’s best-selling luxury condominium communities.
“First, and contrary to ill-informed rumblings, the Las Vegas real estate market is definitely NOT over-built. The current level of housing inventory can keep values stable in the short-term and drive home values higher in the long-term,” said Vaknin, who added that this is especially true in regard to the Las Vegas condominium market where there are no new condo projects under construction or in the development pipeline.
Secondly, the housing market has been helped by sliding mortgage rates that have lowered homeowners’ borrowing costs.
At the end of April, Bankrate reported that the 30-year fixed-rate mortgage had fallen to a near 30-year low of 3.51% (the 30-year low is 3.50%) for highly qualified buyers. A year ago, the rate for the same mortgage was 4.30%.
Vaknin notes that serious buyers should regard now as an opportune time to invest in primary or secondary homes, but cautions the window of opportunity is small because interest rates will rise again. “Current home owners are taking advantage of the lower rates to refinance. Additionally, when the economy rebounds and buyers return to the market in even greater numbers, interest rates will inevitably increase.”
While Las Vegas housing prices continue to rise, there is no denying that there has been a temporary softening of the real estate market as evidenced by a drop in the number of listings and home closings. This drop has resulted in fewer home buyers searching the marketplace.
These factors combined – historically low interest rates, reduced number of potential buyers, limited inventory and stable prices – means an unprecedented opportunity for buyers.
According to Vaknin, the market’s temporary softening will likely be followed by a strong rebound and eventually pent-up demand could push residential home and condominium prices much higher.
“For some people, that means now is a good time to buy a condominium or house. If you wait too long to buy, you may miss the best money-saving opportunity in decades,” he said.
Also currently making the Las Vegas real estate market a good buying opportunity are the exceptional incentives being offered. say For June only, One Las Vegas and Juhl are offering up to $36,000 in incentives. Call the condominium specialists for more detail: One Las Vegas – 702.919.0693; Juhl – 702.389.8546.