The Las Vegas real estate market remains an excellent investment with an optimistic outlook for 2021. Despite the pandemic, naysayer predictions, and contrary to what seems like logic given the economic ravages of COVID, Southern Nevada’s residential real estate market remains remarkably hot. Demand is high, inventory is low, and as a result, home prices are on the upswing. But at the same time, there is no better time than the present to invest in a home given continued low interest rates.
According to Realtor.com’s Housing Market Recovery Index, the Las Vegas metro area officially crossed the threshold for recovery in June 2020, after taking a hit from COVID-19 earlier in the year.
Las Vegas Realtors reported that in September, the median sales prices of existing single-family homes was up 8.8 percent year-over-year. In fact, this trend of rising prices was even witnessed in March, June, July, and August of this year during the early months of the pandemic. And Zillow reports that home values in the Las Vegas real estate market have gone up 3.8 percent over last year.
“To a great extent, the Las Vegas ‘pandemic’ housing market has defied all expectations with both home prices and home sales volume substantially up as compared to 2019,” said real estate expert Uri Vaknin, a partner with KRE, which owns Juhl and One Las Vegas, two of the city’s best-selling luxury condominium communities.
According to Vaknin, whose podcast “Condo Artists-The Other Side of Real Estate” explores real estate trends, several factors are at play to make Las Vegas real estate a good investment now and into 2021.
The first is obviously historically low interest rates. Today’s rates are, on average, more than a full percentage point lower than where they have been over the past five years. “While mortgage rates are currently low, there is a growing sense of urgency among savvy investors to take advantage of these rates sooner, rather than later,” said Vaknin.
Las Vegas also benefits from a high influx of home buyers coming from more expensive areas like the California as well as New York, Illinois and Hawaii. Las Vegas is relatively affordable compared to these regions, thus the migration trends.
In fact, the city of Las Vegas recently launched “Innovate Vegas,” a campaign designed to encourage remote workers to move to the Las Vegas area by advocating leaving behind high housing costs, high state taxes and tough commutes for better weather, no state taxes, lower cost of living and a lifestyle at a value not matched in any major US city. The campaign is based on the premise, if you can live anywhere, while still keeping your job, why not live in Las Vegas?
While experts believe that in 2021 Las Vegas housing pricing may drop slightly, industry specialists like Frank Nothaft, chief economist at CoreLogic, have noted that price declines may only be temporary.
In addition, the CoreLogic Home Price Insights Report also predicts that in 2021, Las Vegas may go through a market shift – from a very hot seller’s market to a more balanced market – rather than a full-blown buyer’s market.
“As of right now, all indications are that the Las Vegas residential real estate market is, and will continue to be, healthy and thriving, making it an exceedingly good investment opportunity,” said Vaknin.