The Las Vegas condo market has seen explosive growth in 2021 with a record 45.6% increase of condos sold in the first half of 2021. Despite rising prices, condos still remain a good value, especially relative to the price of single-family homes and all the advantages that come with condo living.
So, who’s driving condo sales through the roof? Seasoned homebuyers desiring a resort-style, maintenance-free lifestyle; new homebuyers priced out of the single-family home market; “tax-refugees” from much higher priced markets like California, and savvy investors!
“Many buyers who have been priced out of the market for single-family homes have turned to condos,” Redfin Chief Economist Daryl Fairweather said in a recently published article. “Earlier in the pandemic, many buyers shunned condos in favor of large, detached homes with space for offices and homeschooling. But now that many Americans are vaccinated and some are returning to the workplace, extra space isn’t as necessary and the benefits of shared amenities like a gym or a pool are more attractive.”
Uri Vaknin, whose company owns Juhl in downtown Las Vegas and has recently sold-out other condo communities in the valley, the current low interest rates and Las Vegas’ rising rental rates also are spurring more renters to consider condominium ownership given that monthly mortgage payments for a condo are often less than renting. The average rental rate for a Las Vegas-area home increased nearly 23% year over year in July compared to a roughly 9% increase nationally, according to Zillow.
According to Las Vegas market data released by Redfin Corp., median condo prices in August 2021 rose 34.9% year-over-year from 2020 with a medium sales price of $205,000 compared nationally to 20.3% and $304,000. The Las Vegas Realtors trade association (LVR) reports the median price of local condos and townhomes sold in August was $229,000, up 23.8% from August 2020. For the same period, 34.4% of Las Vegas condos sold above list price, a 247.5% year-over-year increase. Ninety-nine percent of all condos sold within 27 days of being listed as compared to 62 days in second quarter 2020.
What’s behind the skyrocketing Las Vegas condo market? Experts agree that a combination of factors have made purchasing a condo right now a savvy investment move. “First and foremost is the stability and growth potential of the Las Vegas real estate market in total,” said Vaknin.
Noting the strength of the Las Vegas real estate market, the August LVR report said: “The total value of local real estate transactions tracked through the MLS during August was more than $1.5 billion for homes and nearly $225 million for condos, high-rise condos and townhomes. Compared to one year ago, total sales values in August were up 29.0% for homes and up 66.0% for condos and townhomes.
When it comes to condos, the old real estate adage – location, location, location – also rings true.
Many buyers who have never considered a condominium lifestyle are discovering that Las Vegas condo living offers the benefits of resort-style living without the high-maintenance hassle of home ownership.
“No one can predict with complete assuredness what will happen to real estate markets, but we remain confident that Las Vegas will continue to be a haven for those looking to make not only smart real estate investments, but for those looking to make a great home for themselves and their families,” said Vaknin.