What Condo Buyers Need to Know About Las Vegas and the Economy: It’s Good News
Americans remain persistent in following their desire to purchase new homes and in many instances relocate to cities like Las Vegas, with solid economic fundamentals.
Despite contrary headlines over the last few months touting changes to the U.S. real estate scene and predictions on the extent of the impact a recession will have on the economy, many Americans remain “flush” with savings and are looking for a “good bet” on their real estate investment!
Solid Economic Fundamentals Continues to Attract New Homebuyers
A recent State Policy Report ranks states based on their most recent performance in three key measures of economic vitality: personal income growth, employment growth and population growth. Nevada’s employment increased 9.7 percent over the past year, compared to the national average of 4.7 percent and the state’s personal income grew by 10.2 percent.
Further good news came in regard to the resiliency of Las Vegas to continue to thrive if a recession tightens its grip on other parts of the country. While in recent years the city has diversified its economic base, attracting, for instance, high tech companies – tourism and the gaming industries remain solid power players.
In that respect, the news is exceptionally positive. Gross gaming revenue in May 2022 was 41 percent above 2019 levels, and Harry Reid International Airport registered an all-time record for passenger traffic in June. “The gaming industry has proven its resilience over decades,” said Ed Pitoniak, CEO of VICI Properties Inc, a real estate investment trust, as reported by Motley Fool. “The gaming customer has proven to be more resilient through both garden-variety recessions and full-blown crises than just about any other discretionary consumer out there.”
A Return to Tried-and-True Financing Options
Even homebuyers with “cash-in-the-bank” – and those who don’t – can’t be faulted for being a bit cautious and returning to financing options that were once popular but fell out of favor while mortgage rates were low.
A recent Morningstar article entitled, “Good deals for the bold:’ How the rest of 2022 might play out for hopeful homebuyers,” suggests homebuyers are re-discovering adjustable-rate mortgages (ARMs) because their initial interest rates are lower than fixed-rate mortgages, although rates and payments can rise after a few years. ARMs will remain an appropriate option for some borrowers, especially those who expect to sell their homes within a few years.
Other homebuyers – especially first-timers – are finding financing options open to them through government insured loan programs, including Federal Housing Administration (FHA loans) and U.S. Department of Veterans Affairs (VA loans).
While others, who can swing it, are opting for 15-year mortgages that offer lower mortgage rates than 30-year mortgages and allow homeowners to build equity more quickly.
Savvy Homebuyers Keeping an Eye Out for Incentives
Homebuyers are keeping an eagle eye on incentives being offered by homebuilders. This is also true for condominium sales, even though that market remains competitive, especially in Las Vegas.
For example, Juhl, the loft-style high-rise luxury condominium community that spans an entire city block in downtown Las Vegas, continues to experience record-breaking sales velocity having recently sold its last remaining penthouse, leaving less than 20 percent of its flexible floor plans available for purchase. Remaining condos range from the low $300,000s to the mid-$600,000s and feature 800 to 1,962 square feet of living space.
According to Shahn Douglas, chief marketing officer for Juhl, which is owned by DK Las Vegas as part of a portfolio of Las Vegas condominiums, Juhl offers low down payment options, Veteran Affairs financing options and the ability to buy down mortgage rates.
Douglas also noted recently in the Las Vegas Review Journal: “The pace of Juhl’s condo sales speaks volumes about a sustained trend of buyers being attracted to locations, like Las Vegas that offer good real estate values and solid economic fundamentals.”
Homebuyers Attracted to Las Vegas – No State Income Tax / Lower Cost of Living
With all the movement in the housing market, even the experts are “hedging their bets” on what will happen next. Yet, the fundamentals of home ownership remain – home values always rise in the long run; owning your home comes with tax benefits, and location, location, location is everything!
And when that location is Las Vegas, homeownership comes with no state income tax, lower cost of living, great weather, amazing cuisine, outdoor adventure, professional sports teams with new stadiums, world-class entertainment and museums, and so much more.
Juhl Epitomizes Modern Urban Living in Las Vegas
When downtown Las Vegas is home as it is for Juhl residents, homeownership also comes with all that Vegas has to offer, practically at their front door. Epitomizing modern urban living, Juhl is within walking distance of both world-class and neighborhood-centric entertainment, restaurants, art galleries, nightlife and shopping as well as a central location for access to the city’s cultural attractions and Las Vegas’ professional sports venues.
For more information, visit Juhllv.com or call 702-816-5466.
