The Las Vegas condo market will remain hot in 2022, according to Shahn Douglas, chief marketing officer, DK Las Vegas.
Douglas, who was recently named a Vegas Inc. C-Suite honoree, is the force behind DK Las Vegas’ record condo-homes sales, with 1,300 residences valued at more than $400 million sold during her tenure. Among its properties, DK Las Vegas owns downtown Las Vegas’ Juhl luxury condominium community, which set record sales during the last two quarters of 2021 and currently has fewer than 90 condo-homes available for sale.
“A persistently tight single-family housing market, in addition to ongoing buyer migration from California, will continue to make an investment in condominiums a popular option for people across a diverse cross-segment,” said Douglas.
Both young and older buyers often share a preference for experiential living, something that condominiums offer through low maintenance, no yardwork and often, smaller footprints that require less upkeep.
Douglas offers her insights into the Las Vegas 2022 condo real estate market.
“Homebuyers are already reaching out to say they want to buy before the Fed hikes rates. Now is definitely the time to act,” said Douglas. The Federal Reserve, per Reuters, has indicated that it will raise rates during its March meeting. And, by the end of 2022, Fannie Mae projects interest rates will hit 3.4 percent and the Mortgage Bankers Association is forecasting 4 percent.
Forty-five million Millennials are ready to enter the home-buying market. And condos, which sometimes offer lower price points, are a good purchase option. Among the market factors driving millennials toward a home purchase is continued workplace flexibility that enables this segment, in particular, to broaden their home search parameters to include more affordable cities like Las Vegas without sacrificing high-energy and innovative lifestyles.
Millennials are also changing the home buying process. According to Zillow nearly 40 percent of Millennials said they would be comfortable buying a home totally online as did 36 percent of Gen-Zers.
With climate risk data now available on real estate websites like Redfin.com, and natural disasters and extreme weather events continuing to increase in frequency, homebuyers may start considering climate change in their home-buying decisions. In addition, states like Nevada will be attractive to homebuyers because of their forward-looking environmental policies.
California migration to Las Vegas will continue, especially if California implements a proposed wealth tax. It’s a trend DK Las Vegas has seen steadily climb since 2019 with approximately 25% of DK Las Vegas condo-homebuyers coming from California. Some made a permanent move to Nevada able to purchase with cash due to the sale of their California home, while others were second-home buyers.
“There is no better place than Las Vegas to live, raise a family, work and, of course, play! We are indeed an extraordinary city that is only getting better,” said Douglas.