With the pandemic hitting the globe in 2020 and its effect still continuing today, something rather interesting has happened in the Las Vegas housing market—a massive increase in the price of homes.
You are probably wondering what has caused this trend and if now is a good time to invest.
This is a big question that real estate experts and investors are looking into.
If you need professional guidance on this subject and on our investment opportunities in Las Vegas, we would love for you to get in touch. We won the award for Best Of Las Vegas for Best Real Estate Company from 2016 to 2019 and have a knowledgeable and committed team that can dive deep into this subject with you.
For those wanting to find out whether or not Las Vegas is a good place for an investment property, we have listed some key housing market indicators here for your reference.
Let us take a look at events taking place across Nevada to get a clearer picture of what is happening.
Las Vegas In-Migration And Housing Sizes
Las Vegas has long been known for its business-friendly environment. With low property tax and no personal income tax, more and more people have moved to the city in recent years.
Case in point, Las Vegas saw a metro area population increase of 2.42 percent from 2021 to 2022.
Interestingly enough, as many people transition to work from home jobs, they need office space and extra square footage.
The first two indicators for a hot housing market and a potentially lucrative investment are thus (1) the rising metro area population and (2) the need for larger homes.
Ultimately, this will make buying homes more difficult for first-time buyers but will benefit those planning to sell their properties, as demand is still strong.
The third indicator that Las Vegas is a prime location for real estate investments is that (3) housing prices are stabilizing nationwide.
While many families are turning to lower priced options, such as townhomes and rentals, home price stabilization means that prices will remain within reach of many middle-class buyers.
Nationwide Housing Shortage And Increasing Countrywide Population Growth
While mortgage interest rates are expected to increase, (6) the average rate for a 15-year fixed-rate mortgage is roughly 3%.
Since low interest rates are one of the biggest drivers of housing demand, this is the sixth indicator of strong real estate investment potential in Las Vegas.
Post-Lockdown Job Returns
The city of Las Vegas is working hard to support small and medium-sized businesses as they reopen post-lockdown. As jobs return and the economy rebounds, (7) more people will be looking to buy homes, which is the seventh indicator of a strong real estate market moving forward.
Overall, the housing real estate market in Las Vegas shows a lot of promise.
However, because of sharp increases in home prices, many investors are on the fence about buying in, thinking that this could be an economic bubble.
While it is natural to be skeptical about the sudden increase in property prices, long-term property investors have the opportunity to profit from increased housing equity.
If you would like to know more, give us a call. We can talk you through the details and show you the best properties in the greater Las Vegas area.
A Select Few To Interview
How do you whittle down the playing field to a few candidates? It doesn’t hurt to do a bit of preliminary research before you start a real conversation. Eliminate agencies that are not local. You want someone who knows the area well or is a member of the community.
In addition, determine if a potential real estate agency works with buyers, agents, or both. You want someone to represent your interests and be on your side. Here are eight more questions to ask:
Do You Have A Specialty?
If you want high-end luxury properties, you wouldn’t want to work with an agency specializing in condos and townhouses. Get a sense of where their strengths lie to see if they match your goals.
Are You Full-Time?
Are the real estate agency professionals working full-time, or is this a side gig to supplement income? If you have a simple property sale, it may not matter to you. On the other hand, if you expect concierge-level service, part-time availability may not be enough.
How Do You Bill?
While it is less common to find an agency that works on an hourly or flat-fee basis, it exists. Ask about their contract requirements, commission, or other billing questions to avoid any unexpected fees.