The Las Vegas Residential Real Estate Market is riding a hot streak of record prices and rising sales despite the bleak economy. Housing prices have record levels last year despite the pandemic's devastating effect on the economy and this trend should follow in 2021.
The housing supply is now at 1.0 months, well below what is considered necessary for a balanced real estate market. Typically, a market that favors sellers has less than six months of supply, while more than six months of supply indicates an excess of homes for sale that favors buyers.
The housing demand is also increasing as people continue to flock to Las Vegas from higher-priced areas, especially Southern California. According to Nevada Census data, it is projected there will be a 1.51 percent increase in population between 2020 and 2025, as well as a 1.46 percent increase in median income in that same timeframe.
The Las Vegas housing market that has been doing particularly well is the Luxury Home Market (considered $750K+). The housing market in the area continues to rise as new residents arrive daily and bring millions of dollars in equity from the sale of their homes in more expensive housing markets. Las Vegas luxury homes are setting some records for the values of properties sold. As demand for housing in the valley climbs and available inventory becomes a premium, home values surge and will continue to do so in 2021.
According to Zillow's home price forecast:
· Las Vegas home values have gone up 5.8 percent over the past year and the latest forecast is that they will rise 7.4 percent in the next year.
· Henderson home values have gone up 6.1 percent over the past year and Zillow predicts they will rise 7.5 percent in the next twelve months.
For sellers, it is a great time to sell. Motivated buyers are looking for houses for sale, and you are not competing with as many property owners. Many sellers have chosen to back out amid this pandemic. As more and more buyers enter the market the prices are going to increase due to tight supply.
For buyers, the mortgage rates are the lowest ever, so they should take advantage of scooping up more expensive houses by locking in lower monthly payments. Lower rates can help buyers stretch their budgets for higher-end deals that otherwise are taken away by seasoned investors in the bidding wars. Overall, it is a win-win scenario for both sellers and buyers and a great time to enter the market.